This Small-Cap Telecom Equipment Company Announced that its JV with Tejas Networks Received an LOI from GETCO: Complete Details Inside!
With a PE ratio of 40.2, the company trades at a premium compared to the industry PE of 21.2. The company has ROCE of 18.9 per cent and ROE of 14.4 per cent.
Shares of Valiant Communications soared by 7.57 per cent on Monday due to a significant development. The company announced that its joint venture with Tejas Networks Limited, a Tata Group company, has received the Letter of Intent (LOI) from Gujarat Energy Transmission Corporation (GETCO) for Project #2. This joint venture, formed exclusively for the project, marks another milestone following the LOI for Project #1, which was announced earlier on January 10, 2025.
As the Lead Bidder, the LOI has been issued to Tejas Networks. The approximate gross value of Valiant’s portion in the project stands at Rs 39 crore. Under the agreement, Valiant will supply and commission its Communication, Protection, and Synchronization equipment for GETCO. The Purchase Order and a detailed contract will follow as part of the due process and will be disclosed accordingly.
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Commenting on the development, Mr. Inder Mohan Sood, CEO of Valiant Communications, stated, 'We are proud of being a partner with Tejas for these business opportunities. Being the indigenous manufacturer, Valiant is a natural partner in business opportunities that are notably arising in the Indian Public Sector out of the ‘Make in India’ and ‘Atmanirbhar Bharat’ initiatives of our Hon’ble Prime Minister of India. We also wish to express our sincere gratitude to the Government of India, which helps us in scaling up these opportunities.'
Valiant Communications is a manufacturer and exporter of a wide range of communications, transmission, protection, synchronization, NAS data storage equipment and cyber security products. It is an approved manufacturer to some of the major power utilities including Power Grid Corporation (India) and various National and State Electricity Boards, with a track record of successful installations in more than 5,500+ power sub-stations worldwide including at 765kV, 440kV, 400kV, 384kV, 220kV, 132kV, 110kV, 66kV and 33kV power sub-stations.
In the Quarterly Results of December 2024, the company reported a revenue of Rs 8.36 crore, reflecting a YoY decline of 31.87 per cent compared to Rs 12.27 crore in December 2023. The operating profit stood at Rs 0.11 crore, marking a decline of 95.55 per cent from Rs 2.47 crore in the same quarter last year. The profit after tax (PAT) stood at a loss of Rs 0.53 crore compared to a profit of Rs 1.38 crore in December 2023, reflecting a decline of 138.41 per cent.
In FY24, the company posted a revenue of Rs 46.33 crore, registering a 47.08 per cent growth compared to Rs 31.50 crore in FY23. The net profit for the year stood at Rs 6.21 crore, up 269.64 per cent from Rs 1.68 crore in the previous financial year.
With a PE ratio of 40.2, the company trades at a premium compared to the industry PE of 21.2. The company has ROCE of 18.9 per cent and ROE of 14.4 per cent.
Investors must keep this Small-Cap stock on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.