Twin orders: Small-cap multibagger gets orders from Cochin Shipyard and ISRO!

Exploring the latest developments in the Order Book, company financial and its business

Orderbook Updates

In a significant development, the company has secured a substantial Purchase Order worth Rs 17.64 Crores for supplying 1 KW HF and SATCOM Equipment, with the contract formalized on November 1, 2023. The esteemed client for this deal is M/s. Cochin Shipyard Limited.

Additionally, another notable Purchase Order, valued at Rs 1.61 Crore, has been received for Automatic Test Equipment (ATE) dedicated to Radar Equipment. This contract was also confirmed on November 1, 2023, with Satish Dhawan Space Centre – SHAR, ISRO, as the client.

Furthermore, the company's Order Books have been enriched with a Supply Order for SATCOM Equipment, amounting to Rs 10.39 Crores, officially conveyed through email on October 6, 2023, from the Material Organisation in Mumbai. These developments underscore the company's persistent efforts to broaden its portfolio and bolster its market position.

About Avantel Ltd

Avantel Limited is engaged in the business of designing, developing and maintaining wireless and satellite communication products, defence electronics, radar systems and development of network management software applications for its customers majorly from the aerospace and defence sectors.

Their services encompass various areas, including SATCOM solutions, offering real-time and cost-effective location transmission for Indian railways. In the wireless domain, Avantel develops radar subsystems and software-controlled radios for military communication. Additionally, they provide software services, such as embedded systems, electronic design, and multimedia solutions. In FY22, the company introduced new products, including Airborne satellite services and High-Power HF systems, expanding their offerings. They've also ventured into the medical sector with products like Skin Staplers, Removers, and Oxygen Concentrators, and are working on Software Defined Radios conforming to international standards.

Its Financials

Avantel has been a standout in terms of profitability, with its stock delivering an impressive 250 per cent returns in the past year. This robust performance is underscored by their consistent Compounded Sales Growth of 14 per cent over the past decade and a Compounded Profit Growth of 17 per cent, reflecting enduring revenue and profit expansion. Their Return on Equity (ROE) has been a commendable 22 per cent over the same 10-year period, exemplifying efficient capital utilization.

In a recent strategic move, the Board of Directors, in the meeting held on October 9, 2023, has approved the issuance of bonus Shares in a 2:1 ratio, offering shareholders 2 Equity Shares for every 1 held. However, the bonus issue of equity shares is subject to the approval of the shareholders through Postal Ballot, and any other applicable statutory and regulatory approvals, as may be required.

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