Telecom stock engaged in providing Telecommunication solutions to Telecom Network Operators hits 10 percent upper circuit upon signing a revenue-sharing agreement with Bharat Sanchar Nigam Limited (BSNL).
With a market capitalization of Rs. 375 Crores, the shares of Sar Televenture Limited hit a 10 percent upper circuit at Rs. 250.15, from its previous day’s close price of Rs. 227.45.
Sar Televenture Limited has entered into a revenue-sharing agreement with Bharat Sanchar Nigam Limited (BSNL) to deliver BSNL telecom services, including fixed, wireless, broadband, and many other services to end users at Sonipat, Haryana.
The project encompasses building, expanding, and maintaining the Optical Fiber Cables (OFC) networks in residential and commercial complexes, establishing interconnections between buildings, and maintaining overhead OFC backhaul from the nearest BSNL pickup point to the Optical Line Terminal location.
It also involves establishing connectivity at the network operation center and providing maintenance support for existing telecom infrastructure and installed equipment on a case-by-case basis.
As per the agreement, both BSNL and SAR Televenture Limited will have a revenue sharing of 51 percent and 49 respectively for Urban Areas and 50 percent each for rural areas for 10 years which is renewable thereafter on similar /mutually agreed terms.
Sar Televenture Limited is a provider of telecommunication solutions to Telecom Network Operators, engaged in the installation and commissioning of 4G and 5G Towers, Optical Fibre Cable (OFC) Systems, and dealing in network equipment.
Sar Televenture Limited already has installed 373 4G/5G Towers which are leased onward to Airtel. Given the expected LOIs from telecom giants like AIRTEL, Vodafone, Jio, etc. the company is planning to install another 6000+ 5G/4G Towers in the next 2 years.
Its revenue from operations grew by 35.97 percent from Rs. 4.73 Crores in FY22 to Rs. 6.43 Crores in FY23, accompanied by profits of Rs. 4 Lakhs to Rs. 79 Lakhs.
It has reported a return on equity (ROE) of 8.90 percent, a return on capital employed (ROCE) of 9.45 percent, and a debt-to-equity ratio of 0.94.
Written by: Bharath K.S
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