Multibagger Avantel stock skyrockets 13% after net profit jumps 44% YoY in Q2

Shares of Avantel, a telecom product manufacturing company, experienced a 13  per cent increase during intraday trading on Monday, October 3, to ₹201 apiece. This significant rise followed the company’s strong financial results for the quarter ending September 2024.

On Saturday, Avantel reported revenue from operations of ₹77.91 crore for the second quarter of fiscal 2025-25 (Q2 FY25), up from ₹54 crore in the same period last year, reflecting a rise of 44.27 per cent. 

The net profit also improved by 43.75 per cent year-on-year (YoY) to ₹23 crore from ₹16 crore in Q2 FY24.

The revenue from the Communications and Signal Processing Products segment, which comprises the company’s entire revenue stream, surged to ₹77.7 crore, compared to ₹54 crore during the same period last year, as per the company’s earnings report.

In recent years, Avantel’s shares have delivered stellar returns to their shareholders, driven by steady order wins and consistent improvement in performance. Over the last one year, they have gained 120%, and in the last five years, the shares have zoomed from ₹3.30 apiece to the current trading value of ₹189, translating into a massive gain of 5,627%.

The company specialises in designing, developing, and maintaining wireless and satellite communication products, defence electronics, radar systems, and network management software applications primarily for the aerospace and defence sectors.

Since the early 2000s, the company has strategically repositioned itself to focus on providing system-based solutions across four key verticals: satellite communications, HF communications, electronic warfare, and radar systems.

The company is strategically positioned in the strategic electronics segment, particularly with its indigenous offerings in SATCOM, HF systems, and various types of software-defined radios.

The privatisation of the space domain has opened new avenues, and the company is poised to capitalise on these significant business opportunities. It is actively planning to enter additional segments of space technology to provide unique, customised solutions to the Indian defence sector.

Massive order wins in Sept

In September, the company secured several significant orders, including a ₹44.49 crore contract from Larsen & Toubro Limited and a ₹3.45 crore order from Bharat Electronics for the supply of Satcom systems.

Additionally, the company received an order from NewSpace India Limited for the supply, installation, and commissioning of a ground segment hub, valued at ₹9.39 crore.

This marked the second order from NewSpace India within a month, as the company had previously received a similar work order in August, which was valued at ₹67.92 crore, according to the company’s regulatory filing.

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