Defence Multibagger Stock Below Rs 30 Hits Upper Circuit: Watch Out for This Major Development

Earlier, the company secured a significant purchase order worth Rs 109 million for radio frequency products and antennas, intended for a mission-critical project in India

After a strong four-day rally, the Nifty and Sensex saw a significant decline as investors opted for partial profit booking ahead of the upcoming budget announcement on Tuesday. Realty and metal stocks were particularly hard hit, leading to the broader markets extending their losses for a second consecutive day. The midcap and Small-Cap indices fell by 2.3 per cent and 2.2 per cent, respectively.

All sectoral indices ended the session in the red. Although the IT sector showed resilience throughout the session, it eventually succumbed to the overall negative sentiment and closed lower. This decline came despite Infosys reporting robust Q1 numbers, highlighting the pervasive bearish mood.

Amidst this widespread sell-off, Kavveri Telecom Products Ltd., a leading manufacturer of wireless products for the telecom, defence, and space industries, surged to a 52-week high of Rs 28.36 on the NSE. The stock hit its upper circuit limit for the day.

The surge in Kavveri's stock price was primarily driven by the company's announcement of a name change from "Kavveri Telecom Products Ltd." to "Kavveri Defence & Wireless Technologies Ltd." This rebranding aligns with its expanded focus on the defence sector and highlights its commitment to the Make in India initiative.

Earlier, the company secured a significant purchase order worth Rs 109 million for radio frequency products and antennas, intended for a mission-critical project in India. These products were developed at Kavveri’s Research and Development center, marking a significant achievement under the Make in India initiative.

Kavveri Telecom's sustained investment in research and development over the years is beginning to yield substantial rewards. The company is now focusing on securing orders from international markets, with the long-term goal of establishing India as a global manufacturing hub for its products under the Make in India initiative.

This penny stock has delivered impressive multibagger returns of 250.12 per cent over the past year and has surged by 99.02 per cent in 2024 alone.

Commenting on the recent developments, Mr. Shivakumar Reddy, Managing Director of Kavveri, expressed his satisfaction with the company's progress:

"It is incredibly gratifying to design and develop these mission-critical products under the Make in India initiative for the first time. Having accomplished many firsts in the wireless industry in India, we are committed to leveraging our expertise and experience to expand our market reach and contribute significantly to making Bharat Atmanirbhar. The benefits of the Make in India initiative, coupled with the significant expected growth of infrastructure in India, make this a very exciting time for us at Kavveri.”

Kavveri is a prominent manufacturer of wireless products, offering top-tier hardware solutions for the telecom, defence, and space industries. The company excels in producing state-of-the-art products and solutions across the wireless industry spectrum, up to an 18 GHz frequency range. Its diverse product portfolio includes antennas, RF components, filters, combiners, multi-couplers, repeaters, TMA/TMB, and more.

Kavveri Defence & Wireless Technologies Ltd., a penny stock, is one to watch.

Disclaimer: The article is for informational purposes only and not investment advice.