This Defence stock, which specializes in designing, developing, and maintaining wireless and satellite communication products, defence electronics, radar systems, and network management software, serving major aerospace and defecse sector customers, jumped 7 percent after securing an order worth Rs. 43 crore from NewSpace India Limited.
Stock Price Movement:
With a market capitalization of Rs. 2,714.01 crores, the share of Avantel Limited has reached an intraday high of Rs. 115 per equity share, rising nearly around 7.42 percent from its previous day’s close price of Rs. 107.05. Since then, the stock has retreated and is currently trading at Rs. 110.90 per equity share.
What Happened:
Avantel Limited has received a purchase order worth Rs. 43.25 crore from NewSpace India Limited. The order involves the supply, installation, and commissioning of devices for Xponders. This is a domestic manufacturing contract and is expected to be completed by August 2025. This order strengthens Avantel’s business and growth in the industry.
Previous Order:
On February 4, 2025, Avantel Limited received a purchase order worth Rs. 5.81 crores from Satish Dhawan Space Centre, such as SHAR and ISRO. The contract is for the Comprehensive Annual Maintenance Contract (CAMC) of the Wind Profiler Radar and will be executed until January 2030.
Product and services:
Avantel Limited designs and manufactures telecommunication, defence, aerospace, and healthcare products. It offers software-defined radios, satellite communication equipment, radar systems, and embedded solutions.
The company also provides CNC machining, 3D printing, and testing services. Its mobile satellite services support ships, submarines, and aircraft. Avantel’s R&D team develops innovative electronics for defence and real-time information systems for railways and other sectors.
Recent quarter results:
Avantel Limited’s revenue has increased from Rs. 59 crore in Q3 FY24 to Rs. 70 crore in Q3 FY25, which has grown by 18.64 percent. The net profit has also grown by 23.53 percent from Rs. 17 crore in Q3 FY24 to Rs. 21 crore in Q3 FY25.
Financial Ratios:
Avantel Limited’s revenue and net profit have grown at a CAGR of 34.44 percent and 40.63 percent, respectively, over the last five years.
In terms of return ratios, the company’s ROCE and ROE should be 47.5 percent and 39.2 percent, respectively. Suprajit Engineering Limited has an earnings per share (EPS) of Rs. 2.69, and its debt-to-equity ratio is 0.08x.
Written By – Nikhil Naik
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.
