Avantel stock zooms more than 12% in one day; up 118% in one year; check details | Market News

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The share price of aerospace and defense company Avantel today soared up 12.47 percent to Rs 193 per share after the company won an order worth Rs.44.49 crore of Larsen and Toubro.

The country’s largest infrastructure company, L&T, has placed an order for the supply of Satcom systems to Avantel. The company, after market hours, said in an exchange filing on Friday that the supply order would be executed by March 2025.

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Gurugram-based Avantel specializes in manufacturing front-end wireless satellite communication systems, signal processing, network management and software development. The company also provides customer support services and has an in-house R&D center in Vishakhapatnam, Andhra Pradesh. Its journey began with the design, development and manufacturing of critical components for the wireless industry.



Avantel share price history

Avantel share price has soared 84.90 per cent in the last six months, compared to a 15.23 per cent rise in the BSE Sensex. Meanwhile, over the past year, the company’s shares have appreciated by 118.49 percent, while Sensex has soared by 28.92 percent.

Avantel shares are trading at a price/earnings ratio of 76.12 times, while having an earnings per share of Rs 2.25. The company has a total market capitalization of Rs 4,511.43 crore.

At 9:52 am, Avantel share price rose 6.59 per cent to Rs 182.90 per share on the BSE. For comparison, the BSE Sensex fell 0.87 per cent to the level of 84,827.10.


Avantel financial performance

On the financial front, the company’s operating revenue declined by 25 per cent to Rs 51.65 crore in the June quarter of financial year 2024-25 (Q1FY25), compared to Rs 68.90 crore for the corresponding period one year earlier. Meanwhile, the company reported a profit of Rs 8.08 crore in the June quarter of FY25, down 7% from Rs 8.69 crore in the same quarter of FY24.

From March 2020 to March 2024, Avantel experienced impressive growth in revenue and net profit. Operating income increased from Rs 51.92 to Rs 223.92, reflecting a remarkable increase of around 331 per cent. Similarly, net profit increased from Rs 10.76 to Rs 55.45, an increase of around 416 per cent. This strong performance highlights Avantel’s success in the wireless industry through effective cost management and growing demand for its products and services.

First publication: September 30, 2024 | 10:12 a.m. STI

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