The shares of this smallcap company jumped upto 2 percent in Thursday’s trading session after receiving an order worth Rs. 3.45 crores from Bharat Electronics.
Price Movement:
With a market capitalization of Rs. 4,245 crores, the shares of Avantel Ltd started Thursday’s trading session on a flatter note at Rs. 177.70 compared to its previous close of Rs. 176.32. During the trading session, the shares hit a high of Rs. 178, gaining around 2 percent and are currently trading at Rs. 174 apiece.
What Happened:
Such a positive movement in share price was observed after the company in an exchange filing announced that it had secured a purchase order valued at Rs.3.45 crores for the supply of Satcom Equipment from Bharat Electronics Limited.
Financials:
Looking at the company’s financials, the revenue increased by around 24 percent from Rs. 41.76 crores during the March quarter to Rs. 51.76 crores in the June quarter. On the other hand, the net profits decreased by around 39 percent from Rs. 12.15 crores to Rs. 7.38 crores during the same timeframe.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 32.02 percent and a return on capital employed (RoCE) of 44.35 percent for the period spanning FY23-24. Moreover, during the same timeframe, the net profit margin stood at 23.42 percent.
Recent Development:
Earlier, the company secured a purchase order valued at Rs. 9.39 crores for the supply, installation, and commissioning of a Ground Segment Hub from NewSpace India Limited.
Key Contracts:
Recently, Avantel secured a final purchase order from NewSpace India Limited, valued at Rs. 67.9 crores, for the supply of prototype terminals with delivery scheduled by April 2025.
Additionally, the company received a significant contract from the Ministry of Defence for SATCOM equipment worth Rs. 1.1 billion, which is to be executed over the next 12 months.
Customer Base:
Avantel Limited primarily serves clients in the Indian defence and aerospace sectors, with a customer base that includes major organizations such as the Indian Navy, Indian Army, Indian Air Force, Bharat Electronics Limited, and international firms like Lockheed Martin and The Boeing Company.
Avantel specializes in providing strategic solutions to the Indian Defence Services and related establishments. It has developed and manufactured various radio components and unique products such as satellite communications, HF communications, electronic warfare, and radar systems.
Shareholding Pattern:
According to the latest shareholding pattern, Promoters own 40.06 percent of the shares, foreign institutional investors (FIIs) hold 0.19 percent, domestic institutional investors (DIIs) possess 0.44 percent, and the remaining 59.30 percent is held by the public.
Company Profile:
Avantel Limited is engaged in the business of designing, developing and maintaining wireless and satellite communication products, defence electronics, radar systems and development of network management software applications for its customers mainly from the aerospace and defence sectors.
Written By Vaibhav Patil
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