High ROE & ROCE Stock Secures Rs 11.36 Crore Order from Goa Shipyard Ltd to Supply Satcom Systems
The PE ratio is 42.9x, with a ROE of 39.15 per cent and a ROCE of 47.5 per cent.
Avantel Ltd has announced the receipt of a significant purchase order from M/s. Goa Shipyard Limited. The order, worth Rs. 11.36 Crores (inclusive of taxes), pertains to the supply of Satcom Systems. This contract, which is a domestic award, falls under the category of manufacturing and is expected to be executed between February 2026 and March 2027. The order's successful completion will strengthen the Company’s position in the Satcom sector and enhance its long-term business prospects.
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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.
The Company serves Indian Defense Forces and government organizations such as DRDO, ISRO, DPSUs, Shipyards, and Ordnance Factories, Indian Railways, Research Institutes. Additionally, its client base includes publicly listed companies like L&T, NewSpace India Limited etc., and private companies operating in the defense and space industries.
The companyhas an established track record of over two decades in the electronics and telecom equipment business which has enabled it to offer a unique combination of embedded systems and related software used in the defense sector, as well as RF systems used in the civilian telecom segment.
In the Quarterly Results of December 2024, the company reported a revenue of Rs 70.44 crore, reflecting a YoY growth of 19.19 per cent compared to Rs 59.10 crore in December 2023. The operating profit stood at Rs 32.79 crore, marking a 31.00 per cent increase from Rs 25.03 crore in the same quarter last year. The profit after tax (PAT) rose by 23.16 per cent to Rs 20.90 crore from Rs 16.97 crore in December 2023.
In FY24, the company posted a revenue of Rs 223.92 crore, registering a 45.16 per cent growth compared to Rs 154.26 crore in FY23. The net profit for the year stood at Rs 55.45 crore, up 84.59 per cent from Rs 30.04 crore in the previous financial year.
With a current price of Rs 115.20, the company has a market capitalisation of Rs 2,815.88 crore. The PE ratio is 42.9x, with a ROE of 39.15 per cent and a ROCE of 47.5 per cent.
Investors must keep this Small-Cap stock on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.