Penny Defence Stock Under Rs 50 Hit Upper Circuit After Securing Prestigious Order from a Leading US Counter Drone Company

Penny Defence Stock Under Rs 50 Hit Upper Circuit After Securing Prestigious Order from a Leading US Counter Drone Company

Kiran Shroff

The stock gave multibagger returns of over 320 per cent from its 52-week low is Rs 10 per share.

On Monday, shares of Kavveri Defence & Wireless Technologies Limited were locked in a 5 per cent upper circuit to Rs 42.44 per share from its previous closing of Rs 40.42 per share. The stock’s 52-week high is Rs 59.53 per share and its 52-week low is Rs 10 per share. The stock gave multibagger returns of over 320 per cent from its 52-week low is Rs 10 per share.

Kavveri Defence and Wireless Technologies Limited has secured a significant order from a leading US-based counter-drone company to design and develop the world's first complex penta-band high-gain antenna. This achievement solidifies Kavveri's reputation as a premier provider of advanced antenna solutions for critical defence and communication applications, particularly in emerging technologies. The innovative penta-band antenna will support five distinct frequency bands, delivering superior performance and unmatched versatility. By seamlessly integrating with the customer's core systems, Kavveri's groundbreaking technology will enhance counter-drone capabilities with robust, efficient, and highly reliable defence and mission-critical communication.

Earlier this year, the company received a substantial Rs 109 million order for domestically produced radio frequency products and antennas, aligning with the government's Make in India initiative. Kavveri's investment in research and development has positioned it well to expand its operations globally, contributing to India's emergence as a prominent telecom equipment manufacturing hub.

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Kavveri Defence & Wireless Technologies Limited, a prominent player in the wireless technology domain, specializes in crafting cutting-edge hardware products and solutions for critical sectors such as defence, wireless communications, and space exploration. The company leverages its deep-rooted expertise and extensive experience to deliver state-of-the-art products and solutions that cater to the diverse needs of the wireless industry, encompassing a wide frequency range up to 18 GHz. Kavveri's comprehensive product portfolio includes a wide array of components, such as antennas, RF components, filters, combiners, multi-couplers, repeaters, TMA/TMB modules, and more. Recently, Kavveri has made significant strides in the telecom sector by successfully designing and developing a novel dual-band panel antenna tailored for cellular networks in Australia, operating seamlessly in the 2 GHz and 3 GHz frequency bands.

According to Quarterly Results, the net sales increased by 233 per cent to Rs 1.30 crore in Q2FY25 compared to net sales of Rs 0.39 crore in Q2FY24. The company reported a turnaround net profit of Rs 0.48 crore in Q2FY25 compared to a net loss of Rs 0.37 crore in Q2FY24, an increase of 230 per cent. In its half-yearly results, the net sales increased by 178 per cent to Rs 1.92 crore in H1FY25 compared to net sales of Rs 0.69 crore in H1FY24. The company reported a turnaround net profit of Rs 0.51 crore in H1FY25 compared to a net loss of Rs 0.57 crore in H1FY24, an increase of 189 per cent.

The company has a market cap of Rs 85.41 crore with promoters holding 15.14 per cent, FIIs owning 13.01 per cent, DIIs owning 0.02 per cent and the public owning 71.83 per cent. Investors should keep an eye on this micro-cap stock.

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

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