Recommendation from Textile and Cables Sector

The scrips in this column have been recommended with a 15-day investment horizon in mind and carry high risk. Therefore, investors are advised to take into account their risk appetite before investing, as fundamentals may or may not back the recommendations.

NANDAN DENIM LTD
CMP - ₹40.91
BSE CODE 532641
Volume 7,92,649
Face Value ₹10
Target ₹49 - ₹51
Stoploss ₹38 (CLS)

Nandan Denim Ltd, a certified producer and supplier of denim fabric, yarn/dyed yarn, cotton fabric, and shirting fabric, caters to consumers across various regions worldwide. Furthermore, they offer grey cotton fabric and blend textiles. The company boasts one of the largest fully integrated manufacturing facilities in India, with a capacity of 110 MMPA. Shares have seen a notable rise in buying interest following the announcement of robust financial results. The company demonstrated significant growth, with a 26.68 per cent rise from ₹457.16 crore in Q4FY23 to total revenue of ₹579.12 crore in Q4FY24. The net profit also saw remarkable growth, reaching ₹27.11 crore, compared to ₹2.76 crore in the same quarter of the previous year. Despite having surged over 100 per cent in the past year and reaching a 52-week high of ₹48.50 last month, they are currently trading 12 per cent lower from their 52-week high. Therefore, considering the potential for further growth, we recommend BUY.

Paramount Communications Ltd
CMP - ₹80.50
BSE CODE 530555
Volume 2,18,592
Face Value ₹2
Target ₹98 - ₹100
Stoploss ₹74 (CLS)

Paramount Communications Ltd is a leading manufacturer of wires and cables in India. It offers a diverse product portfolio encompassing a wide range of wires and cables catering to various industries and applications. Their product lineup includes power cables, control cables, instrumentation cables, telecom cables, and speciality cables designed to meet the specific requirements of different sectors such as power distribution, telecommunications, infrastructure, and industrial automation. When assessing the financial performance of the company on a consolidated basis, there was an impressive revenue growth of 60.02 per cent. This is an increase from ₹202.08 crore in Q4FY23 to report a total revenue of ₹323.37 crore in Q4FY24. The net profit also experienced outstanding growth of 113.71 per cent, reaching ₹29.49 crore, compared to ₹13.80 crore in the corresponding quarter of the previous year. Considering the company’s leading position and strong financial performance, along with shares trading 30 per cent lower than their 52-week high and showing upside potential, we recommend BUY.