The shares of Avantel Ltd gained 8 percent, reaching a 52-week high of Rs 645 on Monday. The company has a market capitalization of Rs 1,037 crores. Such a movement in the stock price was noticed after the company received a new order.
According to the exchange filing, the company obtained a fresh work order from the Ministry of Defence, Coast Guard Headquarters, New Delhi, to manufacture SATCOM Terminals and Hub Stations at Rs 54.38 crores, and the contract’s completion date is set for September 2024.
At 12:15 hrs, the stock was trading at Rs 642.05 on the BSE, up 7.30 percent from its previous close.
Over a one-year period, the stock has provided multibagger returns of 108.85 percent to its stockholders, with a price from Rs 307.18 to current levels. If the investor had invested Rs 1 lakh into the stock, it would have appreciated to Rs 2.08 lakh in a year.
Avantel Limited is engaged in the design, development, and maintenance of wireless and satellite communication devices, defence electronics, radar systems, and network management software applications, The firm primarily serves the aerospace and defence sector.
According to the company’s financials, net profit increased by 50% in Q4FY23 to Rs 9 crore from Rs 6 crore in Q4FY22. Additionally, operating revenue increased to Rs 52 crore from Rs 46 crore in the same period last year.
On a YoY comparison of the metrics, the revenue increased substantially by 48%, from Rs 104 crores in FY 21–22 to Rs 154 crores in FY 22–23. The Net Profit increased by 53 percent during the same period, from Rs 17 crores to Rs 26 crores.
Profitability ratios grew considerably during FY22 and FY23.ROE increased from 21.78 percent to 24.96 percent, while ROCE increased from 27.71 percent to 37.41 percent. Likewise, the operating margin improved to 26.8 percent while the net profit margin remained the same at 17 percent.
As per the shareholding pattern, promoters of the company hold a 40.14 percent stake and retail investors hold a 59.86 percent stake in the company for FY 22-23.
Written by Omkar C
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