We're all set for a new experience. To visit the old Ventura website, click here.
Ventura Wealth Clients

Avantel’s share price soars by 12% today, a remarkable 118% increase in one year

Stocks
2 min Read Sep 30, 2024
Share

Avantel, a leading aerospace and defence company, experienced a remarkable surge in its share price, climbing up to 12.47% to ₹193 per share. This significant jump comes after the company secured an order valued at ₹44.49 crore from Larsen and Toubro (L&T), the nation's largest infrastructure firm. In an exchange filing made post-market hours on Friday, Avantel confirmed that the supply order for Satcom Systems will be fulfilled by March 2025.

Overview of Avantel

Based in Gurugram, Avantel specialises in the manufacture of wireless front-end satellite communication systems, signal processing, network management, and software development. The company also offers customer support services and operates an in-house research and development facility in Vishakhapatnam, Andhra Pradesh. 

Avantel's journey began with the design and manufacturing of essential components for the wireless industry, and it has since expanded its product offerings and capabilities.

Avantel’s share price performance

Avantel's share price has demonstrated impressive growth over the past six months, soaring by 84.90% compared to the BSE Sensex's rise of 15.23%. Over the past year, the company's shares have appreciated by 118.49%, while the Sensex climbed 28.92%. 

As of 09:52 AM today, Avantel's stock price increased by 6.59% to ₹182.90 on the BSE, in contrast to the BSE Sensex, which fell by 0.87% to 84,827.10. Avantel's shares are currently trading at a price-to-earnings ratio of 76.12 times, with earnings per share standing at ₹2.25. The company's total market capitalisation is ₹4,511.43 crore.

Financial highlights

Despite the positive performance in the share market investment, Avantel reported a decline in its revenue from operations, which decreased by 25% to ₹51.65 crore during the June quarter of the financial year 2024-25 (Q1 FY25), down from ₹68.90 crore in the same period last year. However, the company recorded a profit of ₹8.08 crore in Q1 FY25, a slight decline of 7% compared to ₹8.69 crore in Q1 FY24.

From March 2020 to March 2024, Avantel has showcased exceptional growth, with revenue from operations skyrocketing from ₹51.92 crore to ₹223.92 crore—an impressive increase of around 331%. Similarly, net profit surged from ₹10.76 crore to ₹55.45 crore, representing a remarkable rise of about 416%. 

This strong financial performance highlights Avantel's success in the wireless industry, driven by effective cost management and increasing demand for its products and services.

Key takeaways

  • Avantel's share price surged by 12.47% after securing a major order from L&T.

  • The company's shares have appreciated by 118.49% over the past year.

  • Avantel's financial performance has seen revenue decline but significant long-term growth.

  • Effective cost management and product demand have driven substantial net profit growth.

  • Share market investment in Avantel appears promising despite recent revenue challenges.