Shares of this small-cap Telecom stock more than 6 percent today after receiving an order from a defence company to supply and install Satcom Systems. In the last five trading sessions, the stock has seen a jump of more than 11 percent.
With a market capitalization of Rs 1,400 crores, the stocks of Avantel Limited closed today at Rs 867.10, a gain of around 6.20 percent compared to the previous closing levels of Rs 816.40 apiece.
Year-To-Date, the scrip has given multibagger returns of 127 percent to its stakeholders. The same means a 1 Lakh investment turning to Rs 2.27 Lakhs within the above-mentioned period.
The surge in the stock prices was observed after the company, through a regulatory filing with the exchange dated 13th July 2023, informed that the company has received a purchase order worth Rs 4.24 crores from M/s. Mazagon Dock Shipbuilders Limited.
The order is pertaining to the supply, installation, and commissioning of UHF SATCOM Systems and the same is decided to be executed by July 2024.
In addition to the above, the company released its financial results for Q1FY23-24 yesterday with the revenue from operations reported at Rs 69 crores, an increase of 165 percent from Rs 26 crores of revenues same period last year.
Moreover, the after-tax profits were reported at Rs 8 crores compared to Rs 4 crores of profits during the same period last year.
Avantel Limited is involved in the business of manufacturing telecom products and provides other support services as well. The company specializes in technologies related to satellite communication, signal processing, software development, etc. Catering to both, domestic and international markets, the company offers wireless products, Satcom products, etc.
Written by Amit Madnani
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