Shares of this Defence stock under the ‘small-cap’ category rose around 17 percent in Tuesday’s trading session after the company reported robust results for the financial quarter ended September 2023. In the past month, the company’s stock has gained nearly 30 percent.
With a market capitalization of Rs 2,521.08 crores, the stocks of Avantel Limited opened their trading session on Tuesday at Rs 309 and currently trade at Rs 317, indicating a gain of approximately 17 percent as compared to the previous close of Rs 270.10 apiece.
Such sharp bullish movements in the stock prices are been observed after the company, in a filing with the Bombay Stock Exchange (BSE) dated 9th October 2023, announced the quarterly results for the month ended September 2023.
On a sequential basis, the metrics mentioned above showed opposing movements with the operating revenues, on one end, reducing from Rs 69 crores during Q1FY23-24 to Rs 54 crores during Q2FY23-24, and, the net profits, on the other hand, doubling from Rs 8 crores to Rs 16 crores.
On a yearly basis, the company reported decent growth as far as the operating revenues and net profits are concerned. The operating revenues went up from Rs 36 crores during Q2FY22-23 to Rs 54 crores during Q2FY23-24, and, the net profits, during the same time horizon, moved up from Rs 6 crores to Rs 16 crores representing a jump of 166 percent.
According to the shareholding pattern data available for the June 2023 quarter, the company’s Promoters hold a 40.1 percent stake followed by the Retail Investors holding a 59.87 percent stake in the company.
Catering to domestic as well as international markets, Avantel Limited is involved in the business of manufacturing telecom products and also provides other related customer support services.
The company offers wireless, software solutions, satcom products, and other services to its customers spread across the defence, railway, and marine industries.
Written by Amit Madnani
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