Ace investor Sunil Singhania has picked up a 3.6% stake in cable manufacturer Paramount Communications for approximately ₹66.7 crore. This investment comes as the company pushes to expand its manufacturing of specialized high-voltage cables. Investors are now tracking the firm's ability to execute its major capacity expansion plans and maintain growth in the power infrastructure sector.
Ace investor Sunil Singhania’s firm, Abakkus Asset Manager, has acquired a 3.6% equity stake in Paramount Communications. The transaction is valued at roughly ₹66.7 crore, marking a fresh entry for the well-known investor into the cable manufacturing firm. The company specializes in producing wires and cables for diverse sectors including power, railways, data centers, and renewable energy.
Focus on High-Value Expansion
A central part of the company’s business strategy is its upcoming manufacturing facility in Narmadapuram. This unit is designed to produce extra-high-voltage (EHV) cables, specialized transmission conductors, and products using electron-beam technology. Moving into these higher-value, specialized products is a key move to differentiate the company from manufacturers of standard, commodity-grade cables. Management expects the plant to start partial operations by the first quarter of fiscal year 2028, with revenue targets set at ₹500 crore in the first full year, scaling up to ₹1,200 crore by FY29.
Financials and Order Book
The company has demonstrated strong growth, posting a 64.6% compound annual growth rate (CAGR) in net profit over the last four years. As of June 30, 2026, the company reported an order book of ₹615 crore, which suggests stable demand for its products across power transmission and data infrastructure. In its most recent quarterly results for Q1 FY27, the firm reported a 17.4% year-on-year rise in revenue, with a net profit of ₹19.7 crore.
Risks and Market Context
While the expansion plans are ambitious, investors should keep a few risks in mind. The cable manufacturing business is highly sensitive to the prices of raw materials, primarily copper and aluminum. Sudden spikes in commodity prices can put pressure on profit margins if the company cannot pass on these costs to customers immediately. Furthermore, the Narmadapuram plant carries execution risk; investors will need to watch for any potential delays in construction, regulatory approvals, or machinery installation, as these could impact the projected revenue timelines.
The stock has seen significant movement recently, falling by 14% over the last month, even though it remains 26% higher on a one-year basis. This recent volatility highlights the sensitive nature of small and mid-cap stocks to market sentiment and entry/exit patterns of institutional investors.
The next major milestone for shareholders to track is the progress of the Narmadapuram plant and whether the company can maintain its current revenue growth momentum in the coming quarters while managing the risks associated with raw material price volatility.