Multibagger Avantel Reports Impressive Earnings Growth and Big Margin Expansion

In the last three years, the stock has become 10x, delivering positive returns in all-time frames from 1 week to 3 years.  

The Q4 earnings season has kicked off in the domestic market, with the IT bellwethers TCS and Infosys leading the way. While TCS reported earnings that fell short of expectations, investors should not be discouraged as Large-Cap stocks often set the tone during earning season. It's the Small-Cap and Mid-Cap stocks that have the potential to turn the tables around for investors' portfolios.  

One such stock that has caught the eye of investors is Avantel Ltd. The stock has been a sheer outperformer, delivering multibagger returns to its shareholders. In the last three years, the stock has become 10x, delivering positive returns in all-time frames from 1 week to 3 years.  

What's more, the company has recently reported its Q4FY23 earnings, which have been nothing short of outstanding. The company registered its highest quarterly revenue and net profit, with revenue soaring 12.21 per cent YoY to Rs 52.4 crore. The operating profit witnessed a massive rise of 90 per cent YoY to Rs 19 crore, with operating margins jumping to 36per cent. The profit after tax skyrocketed over 50 per cent to Rs 10.5 crore. The company's impressive earnings growth has been accompanied by a big margin expansion as well.  

With such impressive financials, it's no wonder that the stock has hit a fresh 52-week high and ended the day with gains of nearly 7per cent. If you're a savvy investor looking for growth potential, you might want to consider looking at Avantel Ltd.  

Remember, as the saying goes, in the long run, stocks follow their earnings. By investing in companies with strong financials and robust earnings growth, investors can maximize their returns over the long term. So, if you haven't already, consider giving Avantel Ltd a closer look.