7,000 Per Cent Returns: Defence Telecom Company Bags New Order Worth Rs 8,61,00,000 From Ministry of Defence
The stock is up by 66 per cent from its 52-week low, gave multibagger returns of 1,000 per cent in 3 years and a whopping 7,000 per cent in a decade
Established in 1990, Avantel Limited specializes in integrating cutting-edge communication and technology solutions. Headquartered in Visakhapatnam with a corporate office in Hyderabad, Avantel is renowned for its advanced technological products and services catering to strategic sectors such as defence and aerospace. Certified with AS 9100D and ISO 9001:2015, the company focuses on delivering high-quality, reliable solutions that align with the stringent requirements of its clients, including various government and defence entities. Avantel's commitment to innovation and quality has positioned it as a key player in India's technology landscape.
Avantel Limited has secured a contract valued at Rs 8.61 crore (excluding taxes) from Naval Headquarters, Ministry of Defence (Navy) on January 16, 2025. This contract pertains to the Comprehensive Annual Maintenance Contract (CAMC) of Satcom Systems. The order was awarded by a domestic entity and is to be executed domestically by January 2028. This disclosure is made under SEBI circulars dated September 9, 2015, and July 13, 2023.
Earlier, the company secured a substantial Rs 44.49 crore Purchase Order from Larsen & Toubro Limited for Satcom Systems, to be domestically manufactured and delivered by March 2025. This follows two other significant orders: a Rs 67.92 crore contract from NewSpace India Limited for Satcom Terminals and a Rs 3.45 crore PO from Bharat Electronics Limited for Satcom Equipment, both with scheduled completion dates in April and July 2025, respectively. These contracts underscore Avantel's leading position in the Satcom sector and its capacity to deliver cutting-edge communication solutions to meet rising market demands.
DSIJ’s 'multibagger Pick’ service recommends well researched multibagger stocks with High Returns potential. If this interests you, do download the service details here.
According to Quarterly Results, the net sales increased by 42.6 per cent to Rs 77 crore and net profit increased by 43.8 per cent to Rs 23 crore in Q2FY25 over Q2FY24. As of annual results, the net sales increased by 45.3 per cent to Rs 224.37 crore and net profit increased by 96 per cent to Rs 52.55 crore in FY24 over FY23.
The company is a Small-Cap company having a market cap of over Rs 3,300 crore with a 3-year stock price CAGR of 145 per cent. The company's shares have an ROE of 39 per cent and an ROCE of 47 per cent. The stock is up by 66 per cent from its 52-week low, gave multibagger returns of 1,000 per cent in 3 years and a whopping 7,000 per cent in a decade. Investors should keep an eye on this small-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.