Avantel's Q1 FY25 Financial Results Show Mixed Performance, MarketsMOJO Advises 'Hold'

Avantel, a smallcap IT hardware company, recently declared its financial results for the quarter ending June 2024. The stock call by MarketsMOJO for Avantel is ‘Hold’.

According to the financials, Avantel’s operating cash flow has been consistently growing over the last three years, with the highest annual amount of Rs 65.18 crore. This indicates that the company has been able to generate higher cash revenues from its business operations.

However, there are some areas of concern for Avantel. The company’s profit after tax (PAT) for the quarter has fallen by 43.8% compared to the average PAT of the previous four quarters. This is a negative trend in the near term. Similarly, the net sales for the quarter have also decreased by 7.7% compared to the average net sales of the previous four quarters. The operating profit and profit before tax less other income have also shown a declining trend in the near term.

The earnings per share (EPS) for the quarter is at its lowest in the last five quarters, indicating a decline in profitability and lower earnings for shareholders.

Overall, Avantel’s financial performance for the quarter ending June 2024 has been flat, with some areas of concern. Investors are advised to hold their position in the company’s stock, as recommended by MarketsMOJO.