Shares of this defence stock under the ‘small-cap’ category jumped around 5 percent after the company secured a domestic order from “M/s. NewSpace India Limited” worth Rs 67.92 crores.
With a market capitalization of Rs 3,113.85 crores, the stocks of Avantel Limited opened their trading session on Monday at Rs 127 and currently trades at Rs 129.20, gaining around 5 percent as compared to the previous closing levels of Rs 123.10 apiece.
Such bullish movements in the stock prices were observed after the company, through a recent regulatory filing with the exchange, intimated that it has received a domestic purchase order worth Rs 67.92 crores from M/s. NewSpace India Limited.
The above order pertains to the supply, installation, and commissioning of “Satcom Terminals” (Xponders), and, the same is to be executed by October 2024. Coming onto the financials, the company, during the recent quarters, reported opposing movements as far as the operating revenues and net profits are concerned.
The former, on one end, fell from Rs 68.95 crores during Q1FY23-24 to Rs 54.33 crores during Q2FY23-24, and, the latter, due to efficient cost management, doubled from Rs 8.01 crores to Rs 16.07 crores.
The Union Budget, for FY24, envisages a total outlay of around Rs 45 lakh crores out of which, the ‘Ministry of Defence’ has been allocated a total budget of approximately Rs.5.90 lakh crores constituting almost 13.20 percent of the total budget.
As a result of the same, the company, in the current financial year, expects to focus more on the development of ship-borne as well as land-based platforms and the design & development of Air Defence Radar systems for the Indian Army.
Avantel Limited is associated with the telecom sector manufacturing satcom products, software solutions, etc. Specializing in technologies related to satellite communication, the company caters to a wide range of industries including defense, railway, marine, and many more.
Written by Amit Madnani
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.
