Avantel – Bonus Issue & New Purchase Order Fuel Investor Optimism

Indian headline indices started the week with a substantial surge following election outcomes, igniting the markets. These indices reached new all-time highs on the bourses, with robust uptrends observed in the energy, oil & gas, power, and capital goods sectors. With 2,485 shares rising on the BSE and 1,089 shares declining, the advance-decline ratio strongly remained in favour of advances. The BSE Telecommunication index emerged as one of the top-performing sectoral indices, driven by notable gains from Optiemus Infracom Ltd and Avantel Ltd.

Purchase order and stock price movement 

Avantel Ltd experienced a surge in buying interest, propelling its shares close to the recently achieved 52-week high. This upward momentum followed the company’s announcement of securing a provisional purchase order valued at Rs 67.92 crore from M/s NewSpace India Limited. The order entails the supply, installation, and commissioning of Satcom Terminals (Xponders).

The company’s stock witnessed heightened buying interest after it disclosed receiving a purchase order totaling Rs 17.64 crore from Cochin Shipyard Limited and an additional order valued at Rs 1.61 crore from Satish Dhawan Space Centre, ISRO. The stock has undergone a remarkable upswing, posting a surge of approximately 285% in the last six months and delivering an impressive return of over 330% to investors in the past year. Presently, the shares are trading at Rs 130 per share, having recently peaked at a 52-week high of Rs 136 on the BSE.

About the company

For three decades, Avantel has been a stalwart supporter of the strategic sector, introducing numerous distinctive products and solutions tailored for the Indian Defence Services and allied establishments. Avantel Limited is engaged in the business of designing, developing and maintaining wireless & satellite communication products, defence electronics, radar systems and the development of network management software applications for its customers from the aerospace and defence sectors.

Keep a close eye on this stock for the upcoming trading sessions.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.