7,500 Per Cent Returns: Multibagger Aerospace & Defence Telecom Stock In Green as Board to Raise Rs 49,70,00,000 via Rights Issue
The stock gave multibagger returns of 103 per cent from its 52-week low, 1,275 per cent in 3 years and a whopping 7,500 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.
The Company's Board of Directors, in their meeting held on October 24, 2024, authorized the issuance of fully paid-up equity shares worth a maximum of Rs 49,70,00,000 (Rupees Forty-Nine Crore Seventy Lakhs Only) through a rights issue to eligible equity shareholders. A Rights Issue Committee was formed to oversee this process. The Committee, in its meeting on December 4, 2024, approved the Draft Letter of Offer (DLOF) dated December 4, 2024, for the proposed Rights Issue. This DLOF will be submitted to the stock exchanges where the Company's equity shares are listed.
Earlier, Avantel Limited 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.
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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 4,000 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 gave multibagger returns of 103 per cent from its 52-week low, 1,275 per cent in 3 years and a whopping 7,500 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.