This defence stock with focuses on wireless and satellite communication, defence electronics, radar systems, and network management software, catering to key clients in the aerospace and defence sectors, in focus after securing an order worth ~Rs. 2 crores from Larsen & Toubro Limited.
Stock Price Movement:
With a market capitalization of Rs. 2,868.19 crores, the share of Avantel Limited has reached an intraday high of Rs. 120.05 per equity share, rising nearly around 1.78 percent from its previous day’s close price of Rs. 117.95. Since then, the stock has retreated and is currently trading at Rs. 117.20 per equity share.
What Happened:
Avantel Limited has received a purchase order worth Rs. 1.64 crores from Larsen & Toubro Limited for the supply of Satcom Systems. This is a domestic manufacturing contract and is expected to be completed by January 2026. This highlights Avantel’s strong business growth and industry presence.
Previous Orders:
On February 19, 2025, Avantel Limited received a Rs. 43.25 crore purchase order from NewSpace India Limited for the supply, installation, and commissioning of Xponders devices, with completion expected by August 2025.
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 develops and manufactures advanced solutions for telecommunications, defense, aerospace, and healthcare. Its offerings include software-defined radios, satellite communication systems, radar technology, and embedded solutions.
Additionally, the company also provides CNC machining, 3D printing, and testing services. With a strong R&D focus, Avantel delivers innovative electronics for defense applications and real-time information systems for railways and other industries.
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.
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.
Financial Ratios:
In terms of return ratios, the company’s ROCE and ROE are 47.5 percent and 39.2 percent, respectively. Avantel Limited has an earnings per share (EPS) of Rs. 2.69, and its debt-to-equity ratio is 0.08x.
Written By – Nikhil Naik
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