Avantel Ltd – Share Gains Momentum after Securing a Major Order

With a major boost from IT companies, Indian benchmark indices were trading higher, while the BSE Information Technology index emerged as the best-performing sector with gains of almost 1.9%. The only losing sectors were BSE Financial Services, BSE Bankex and BSE Auto. With 2,129 shares rising on the BSE and 1,414 shares declining, the advance-decline ratio firmly remained in favour of advances. Broader indices significantly outpaced the main indices. 

Avantel Ltd, a telecom equipment stock, was among the top trending stocks after the company announced that it had received a new order. Today, Avantel shares gained more than 3% and reached an intraday high of Rs 899.95 per share. On the BSE, shares are trading near a 52-week high of Rs 906.35 per share. 

The company announced that it has received a purchase order from Mazagon Dock Shipbuilders Limited for Rs 4.24 crore. In addition, a contract for Rs 54.38 crore was signed by the company in June with the Ministry of Defence, Coast Guard Headquarters, New Delhi. Shares have had a spectacular rise, soaring more than 100% in the last six months and about 240% in a single year!   

Considering the company’s quarterly performance, on a consolidated basis, it reported an outstanding growth of 155% from Rs 26.99 crore registered in Q1FY23, recording total revenue of Rs 68.95 crore in Q1FY24. It has reported strong operating profit growth of 93%. When compared to the same quarter last year, the net profit for the first quarter of FY24 climbed 82.84%, from Rs 4.38 crore to Rs 8.01 crore. 

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.

Also Read: Best Defence Stocks In India

Keep a close eye on this stock for the upcoming 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.