Founded in 1990 and headquartered in Visakhapatnam with a corporate office in Hyderabad, Avantel Limited specializes in advanced communication and technology solutions. The company is recognized for its innovative products and services, particularly in strategic sectors like defense and aerospace. Avantel is certified with AS 9100D and ISO 9001:2015, ensuring that it meets the stringent quality standards required by various government and defense entities. This commitment to innovation and quality has established Avantel as a prominent player in India’s technology landscape.
Recent Developments
The Board of Directors is set to meet on Thursday, October 24, 2024, to consider a proposal for fundraising through the issuance of equity shares via a Rights Issue or another suitable method, pending necessary approvals.
Recently, Avantel secured a significant purchase order worth Rs 44.49 crore from Larsen & Toubro Limited for domestically manufactured Satcom Systems, with delivery scheduled by March 2025. This follows two other notable contracts: a Rs 67.92 crore order from NewSpace India Limited for Satcom Terminals and a Rs 3.45 crore purchase order from Bharat Electronics Limited for Satcom Equipment, expected to be completed in April and July 2025, respectively. These contracts highlight Avantel’s leading position in the Satcom sector and its ability to meet the rising demand for cutting-edge communication solutions.
Financial Performance
In Q2 FY25, Avantel reported a net sales increase of 42.6%, reaching Rs 77 crore, while net profit rose by 43.8% to Rs 23 crore compared to Q2 FY24. For the full fiscal year, the company achieved a 45.3% increase in net sales, totaling Rs 224.37 crore, and a remarkable 96% increase in net profit to Rs 52.55 crore over FY23.
Avantel is classified as a small-cap company with a market capitalization exceeding Rs 4,350 crore. It boasts a three-year stock price CAGR of 160%, an ROE of 39%, and an ROCE of 47%. The stock has delivered impressive multi-bagger returns, rising 110% from its 52-week low, 1,100% over three years, and a staggering 9,500% over the past decade. Investors should closely monitor this small-cap stock for potential opportunities.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial advice. Investments in stocks and securities carry risks, and past performance is not indicative of future results. Before making any investment decisions, it is advisable to conduct thorough research and consult with a qualified financial advisor. The author and publisher are not responsible for any losses or damages arising from the use of this information.
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