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1,000 per cent Returns by this Penny Stock: Debt-free multibagger defence telecom stock bags order worth Rs 10.9 crore
Prajwal Wakhare

1,000 per cent Returns by this Penny Stock: Debt-free multibagger defence telecom stock bags order worth Rs 10.9 crore

The stock’s 52-week high is Rs 35.24 per share while its 52-week low is Rs 7.60 per share, gaining multibagger returns of 259 per cent in just a year.

Kavveri Telecom Products Ltd’s shares zoomed by 2 per cent on Monday amid positive development in the company. Kavveri Telecom Products Ltd received the order Valued at Rs 10.9 crore for Radio frequency products and Antennas under the Make in India initiative, which shall be executed during the 2nd and 3rd quarter of the FY 2024-2025 and the company also received approval from MCA to change the name of the company to KAVVERI DEFENCE & WIRELESS TECHNOLOGIES LIMITED.

Further Commenting on this new development, Mr. Shivakumar Reddy, Managing Director, Kavveri Telecom Products Limited said that, "We are very pleased to report that we are in the process of Executing this Purchase Order for the products, which are designed and manufactured for the first time in India, and the entire Purchase Order will be executed during Q2 and Q3 of FY 2024-25.”

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Earlier, Kavveri Telecom Products Limited has experienced significant stock price growth, hitting consecutive upper circuits and 52-week highs. This surge follows the company's board approval on July 18, 2024, to initiate a name change to Kavveri Defence & Wireless Technologies Limited. On July 29, 2024, the Central Registration Centre approved the application for this name change, confirming its availability for the company. However, the new name must be adopted within 60 days and remains subject to potential withdrawal if irregularities are discovered, while also requiring adherence to provisions of the Companies Act, 2013.

According to Quarterly Results, the net sales increased by 107 per cent to Rs 0.62 crore in Q1FY25 compared to Rs 0.30 crore in Q1FY24. The company reported a turnaround net profit of Rs 0.03 crore in Q1FY25 compared to a net loss of Rs 0.20 crore in Q1FY24, an increase of 115 per cent.

Kavveri Telecom is a leading wireless products manufacturer, providing world-class hardware products and solutions for the telecom, defence and space industry. Kavveri Telecom combines expertise with experience to deliver state-of-the-art products and solutions spanning the wide spectrum of the wireless Industry up to 18 GHz frequency range. The diverse range of products manufactured by Kavveri includes Antennas, RF (Radio Frequency) Components, Filters, Combiners, Multi-couplers, Repeaters, TMA/TMB and many more.

The company has a market cap of Rs 62.8 crore and it's completed debt-free as of March 2024. The stock has given more than 1,000 per cent returns in last five years.

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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