4,200 Per Cent Returns: Defence Stock to Be in Focus Tomorrow on Positive Results, Dividend, and Rs 81 Crore Rights Issue Announcement
The stock is up by 43 per cent from its 52-week low, giving multibagger returns of 560 per cent in 3 years and a whopping 4,200 per cent in 5 years.
Avantel Limited (BSE: 532406 & NSE: Avantel Limited), a provider of technology solutions to the defence and communication sectors, announced its audited financial results for the quarter and year ended 31st March 2025.
The company reported revenue of Rs 248.48 crore, marking an increase of 17.81 per cent quarter-on-quarter and 10.97 per cent year-on-year in constant currency terms. EBITDA stood at Rs 97.14 crore, reflecting a 13.34 per cent growth year-on-year. Adjusted Profit After Tax (PAT) rose by 8.05 per cent YoY to Rs 4.46 crore. In line with its commitment to delivering shareholder value, the Board has recommended a final dividend of Rs 0.20 per share, with the record date set for June 12, 2025.
Key financial highlights for FY 2024 – 2025:
- Revenue from operations increased by (Rs 24.57 crore) 10.97 per cent to Rs 248.48 crore in FY25 as against Rs 223.92 crore in FY24.
- EBITDA grew by (Rs 11.43 crore) 13.34 per cent to Rs 97.14 crore in FY25 as against Rs 85.71 crore in FY24.
- PBT for FY25 grew by (Rs 8.24 crore )11.08 per cent to Rs 82.72 crore as against Rs 74.47 crore in FY24.
- Profit after Tax for FY25 was Rs 59.92 crore as against Rs 55.45 crore in FY24, marking 8.05 per cent growth.
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Established in 1990 by Vidyasagar Abburi, Avantel Limited is a prominent Indian technology company specialising in advanced communication and technology solutions for strategic sectors like defence and aerospace. Headquartered in Visakhapatnam with a corporate office in Hyderabad, Avantel is known for its high-quality and reliable products and services, including advanced communication systems, radar technology, and network management software. Holding AS 9100D and ISO 9001:2015 certifications, the company focuses on delivering innovative solutions in areas such as SATCOM, radar subsystems, SDRs and defence electronics, contributing significantly to India's technological self-reliance and national security.
The company is a Small-Cap company having a market cap of over Rs 3,000 crore with a 5-year stock price CAGR of 120 per cent. The company's shares have an ROE of 29 per cent and an ROCE of 37 per cent. The stock is up by 43 per cent from its 52-week low, giving multibagger returns of 560 per cent in 3 years and a whopping 4,200 per cent in 5 years. Investors should keep an eye on this small-cap defence stock.
Disclaimer: The article is for informational purposes only and not investment advice.