Avantel freezes at 20% upper circuit on winning order worth Rs 126 crores

Shares of Avantel were locked in the 20 per cent upper circuit at Rs 892.40 on the BSE in Tuesday’s intra-day trade after the company said it has received a supply order worth Rs 125.68 crore for Loco devices for implementation of RTIS phase – 2 (Real Time Train Information system).

The stock of the telecom equipment company was trading close to its 52-week high level of Rs 949, touched on October 19, 2021.

At 12:37 pm; around 24,000 shares had changed hands on the BSE as compared to an average sub 6,000 shares that were traded daily in the past two weeks. There were pending buy order for 15,880 shares on the BSE, the exchange data showed. In comparison, the S&P BSE Sensex was down 0.59 per cent at 56,153 points.

In the last one year, the market price of Avantel has more-than-doubled or risen 124 per cent, as against an 11 per cent rise in the benchmark index.

For the first nine months ended December 2021 (9MFY21), the company had posted 22.5 per cent year-on-year (YoY) growth in its consolidated net profit at Rs 11.90 crore. Revenue from operations grew 20 per cent YoY at Rs 58.24 crore.

Avantel is engaged in manufacturing of wireless front-end, satellite communication, embedded systems, signal processing, network management and software development and rendering related customer support services.

The company operates mainly in the strategic segment and any consolidation on revenue / capital procurement by the defence services would open new avenues for business. The management expects positive influence of the increased defence outlays on pending procurement cases of the strategic customers leading to order conversion and enhanced enquiries for Avantel’s product offerings.

Avantel has collaborated with L&T who has bid as lead system integrator for implementing the RTIS project of CRIS, Indian Railways.

L& T has been declared as the successful bidder. Avantel, therefore, would supply the IRN (Indian Rail Navigator) and RMT-L (Rail Mount Terminal-Loco) to be installed on 6,300 locos, the company had said in its FY21 annual report.