The shares of Avantel Limited opened at Rs 394 on Monday and climbed up by 15 per cent to reach its new 52-week high of Rs 459.90 in the early trading hours. In the past five days, the stock has climbed up by 25 per cent. In a month, it has climbed up by 4 per cent.
In January this year, the stock was trading at Rs 175 a piece on NSE. From there it has spiked up to the current levels logging a multibagger return of 143 per cent in just 8 months. In a year, it has delivered 108 per cent returns.
Avantel Limited is engaged in the business of designing, developing and maintaining wireless and satellite communication products, defence electronics, and radar systems. It also develops network management software applications for customers primarily in the aerospace and defence sectors.
In Q2FY23, the company reported a total income of Rs 36 crore as compared to Rs 15 crore in the same quarter a year earlier. In the previous quarter, the company reported a total revenue of Rs 26 crores.
In the quarter under review, their net profit stood at Rs 6 crores which is an increase of 100 per cent Year on Year (YoY) from Rs 3 crores. On a sequential basis, their net profit increased by 20 per cent from Rs 5 crores.
In addition to that, the company has a strong order book. As per the experts, the order book of the defence company is more than Rs 250 crore. The company also has zero debt on its balance sheet which adds to its strengths of the company.
The small-cap company has a market capitalization of Rs 703 crores and a dividend yield of 0.92%. The promoters hold a 40.14 per cent stake in the company with zero shares pledged.
Written by Anouska Roy