A small-cap stock saw a notable rise of over 4 percent following the announcement of securing an Rs.11.36 crores order from M/s. Goa Shipyard Limited. The order pertains to the supply of Satcom systems, marking a significant win for the company in the defense and communication sector.
Price Variation
During Monday’s trading session, shares of Avantel Ltd reached an intra-day high of Rs.118.26 each, rising 4.5 percent from the previous closing price of Rs.113.26 per share. However, the shares have retreated since then and are currently trading at Rs.116.60 apiece.
Order Details
Avantel Ltd has received a significant purchase order from M/s. Goa Shipyard Limited, valued at Rs.11.36 crores (inclusive of taxes), as per the communication received on March 31, 2025. This order is for the supply of Satcom systems, which will contribute to enhancing communication capabilities in various sectors.
The order falls under the manufacturing category and has been awarded by a domestic entity. It is scheduled to be executed over a period spanning from February 2026 to March 2027. This marks an important milestone for Avantel Ltd as it strengthens its position in the Satcom systems market.
Also read: Multibagger power stock in focus after securing ₹1,397 Cr order from Adani Group company
Business Operations
Avantel Ltd. is a diversified company offering a wide range of products and services across various sectors. In the telecom domain, it manufactures software-defined radios, satellite communication equipment, HF communication devices, and radar systems. The company also provides network management systems and application software tailored for defense and telecommunications industries.
Avantel operates Mobile Satellite Services (MSS) networks, enabling voice and data communications for maritime (ships), aerial (aircraft), and underwater (submarines) applications. In addition, the company offers engineering services, including CNC machining, 3D printing, and assembly. Furthermore, Avantel has expanded its portfolio to include healthcare-related products alongside its core telecommunications offerings.
Financial Overview
In its recent financial update, Avantel Ltd reported consolidated revenue of Rs.70 crores for Q3 FY25, reflecting an increase of 18 percent compared to Rs.59 crores in Q3 FY24. Furthermore, the company reported net profits of Rs.21 crores in Q3 FY25, rising 24 percent from Rs.17 crores posted during the same period last year.
Ratio Analysis
The company has a Return on Capital Employed (ROCE) of 38.74 percent and a Return on Equity (ROE) of 29.85 percent. Its Price-to-Earnings (P/E) ratio stands at 44.47, higher than the industry average of 25.31. Furthermore, the company maintains a current ratio of 3.45, a debt-to-equity ratio of 0.09, and an Earnings Per Share (EPS) of Rs.2.55.
Written by – Siddesh S Raskar
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
