Avantel

Is Avantel overvalued or undervalued?

As of December 26, 2022, Avantel is considered very expensive with a PE ratio of 80.42 and other high valuation metrics, despite strong returns, indicating that its current price of 165.75 is not justified compared to industry peers.

As of 26 December 2022, Avantel's valuation grade has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently considered overvalued, with a PE ratio of 80.42, an EV to EBITDA ratio of 49.27, and a Price to Book Value of 19.13. These ratios are notably higher than its peers, such as Redington, which has a PE ratio of 20, and Tejas Networks, with a PE ratio of 28.73, highlighting the disparity in valuation within the industry.<BR><BR>Despite Avantel's strong return on capital employed (ROCE) of 31.54% and return on equity (ROE) of 23.79%, the elevated valuation ratios suggest that the stock is not justified at its current price of 165.75. The company's recent performance has outpaced the Sensex, with a year-to-date return of 14.21% compared to the Sensex's 5.60%, but this does not mitigate the concerns regarding its high valuation metrics.

Who are the top shareholders of the Avantel?

The top shareholder of Avantel is Vidyasagar Abburi, with a 15.93% stake, while individual investors own 49.87%. K. Swapna is the largest public shareholder at 2.46%, and there are 22 foreign institutional investors holding 0.46% combined, with no pledged promoter holdings reported.

The top shareholders of Avantel include Vidyasagar Abburi, who holds the highest stake at 15.93%. Additionally, individual investors collectively own 49.87% of the company. Among public shareholders, K. Swapna is the largest, with a holding of 2.46%. The company also has 22 foreign institutional investors (FIIs) holding a combined 0.46%, and two mutual fund schemes that account for 0.35%. There are no pledged promoter holdings reported.

Who are in the management team of Avantel?

As of March 2023, Avantel's management team includes A Vidyasagar (Chairman & Managing Director), A Sarada (Whole Time Director & CFO), Abburi Siddhartha Sagar (Whole-time Director), and D Rajasekhara Reddy (Company Secretary & Compliance Officer), along with several non-executive and independent directors.

As of March 2023, the management team of Avantel includes the following members:<BR><BR>1. A Vidyasagar - Chairman & Managing Director<BR>2. A Sarada - Whole Time Director & CFO<BR>3. Abburi Siddhartha Sagar - Whole-time Director<BR>4. D Rajasekhara Reddy - Company Secretary & Compliance Officer<BR><BR>Additionally, the Board of Directors includes several non-executive and independent directors: <BR>- N Naveen<BR>- Y Kishore<BR>- Elluru Bala Venkata Ramana Gupta<BR>- M Narayana Rao<BR>- Ramchander Vyasabhattu<BR><BR>This structure reflects a combination of executive leadership and independent oversight within the company.

What does Avantel do?

Avantel Ltd is a Small Cap company in the Aerospace & Defense industry, incorporated in 1990, with net sales of 49 Cr and a net profit of 6 Cr as of March 2025. It has a market cap of Rs 4,870 Cr and key financial metrics include a P/E ratio of 85.00 and a return on equity of 23.79%.

Overview:<BR>Avantel Ltd operates in the Aerospace & Defense industry and is categorized as a Small Cap company.<BR><BR>History:<BR>Avantel Ltd was incorporated on May 30, 1990, and was formerly known as Avantel Softech Ltd. The company was renamed Avantel Communications Pvt Ltd in August 1993 and later converted into a Public Ltd company in December 1994. The latest quarterly results report net sales and net profit for March 2025.<BR><BR>Financial Snapshot:<BR>Net Sales: 49 Cr (Quarterly Results - Mar 2025) <BR>Net Profit: 6 Cr (Quarterly Results - Mar 2025) <BR>Market Cap: Rs 4,870 Cr (Small Cap)<BR><BR>Key Metrics:<BR>P/E: 85.00 <BR>Industry P/E: 27 <BR>Dividend Yield: 0.00% <BR>Debt-Equity: 0.08 <BR>Return on Equity: 23.79% <BR>Price to Book: 20.29 <BR><BR>Contact Details:<BR>Address: Sy No 141 Plot No 47/P, APIIC Indl Park Gambheeram (V) Visakhapatnam Andhra Pradesh : 531163 <BR>Tel: 91-891-6698000 <BR>Email: info@avantel.in <BR>Website: http://www.avantel.in

What is the bonus history of the Avantel?

Avantel's recent bonus history includes a 2:1 bonus announced for November 24, 2023, and a previous 3:1 bonus issued on June 20, 2022. These bonuses reflect the company's strategy to enhance shareholder value.

Avantel has a notable bonus history. The most recent bonus issue announced is a 2:1 bonus, with both the record date and ex-date set for November 24, 2023. Prior to this, Avantel issued a 3:1 bonus on June 20, 2022, with the ex-date being June 17, 2022. This reflects the company's strategy to enhance shareholder value through bonus shares. If you have any more questions about Avantel or need further details, feel free to ask!

Has Avantel declared dividend?

Avantel Ltd has declared a 10% dividend, with an ex-date of June 12, 2025. Despite a low dividend yield, the company has demonstrated significant total returns over various periods, including a total return of 5278.4% over the past five years.

Avantel Ltd has declared a 10% dividend.<BR><BR>Dividend Details:<BR>- Percentage announced: 10%<BR>- Ex-date: 12 Jun 25<BR><BR>Dividend Yield: 0%<BR><BR>Total Returns by Period:<BR>In the last 6 months, Avantel Ltd experienced a price return of 12.39%, a dividend return of 0.13%, resulting in a total return of 12.52%.<BR><BR>Over the past year, the company saw a price return of 55.99%, a dividend return of 0.17%, leading to a total return of 56.16%.<BR><BR>In a 2-year period, Avantel Ltd achieved a price return of 443.39%, with a dividend return of 0.94%, culminating in a total return of 444.33%.<BR><BR>For the 3-year period, the price return was 788.16%, the dividend return was 8.01%, resulting in a total return of 796.17%.<BR><BR>In the last 4 years, the company reported a price return of 1993.14%, a dividend return of 64.21%, which gave a total return of 2057.35%.<BR><BR>Finally, over the past 5 years, Avantel Ltd experienced a price return of 5059.29%, a dividend return of 219.11%, leading to an impressive total return of 5278.4%.<BR><BR>Overall, Avantel Ltd has declared a dividend, and despite a low dividend yield, the company has shown substantial growth in total returns across all periods, indicating strong performance.

Who are the peers of the Avantel?

Avantel's peers include Hind.Aeronautics, Bharat Electron, Mazagon Dock, Bharat Dynamics, Cochin Shipyard, DCX Systems, NIBE, Ideaforge Tech, and Jaykay Enter. In terms of management risk, growth, and capital structure, Avantel is rated average, with a 1-year return of 28.55%, lower than Mazagon Dock's 111.91% but higher than Ideaforge Tech's -18.15%.

Peers: The peers of Avantel are Hind.Aeronautics, Bharat Electron, Mazagon Dock, Bharat Dynamics, Cochin Shipyard, DCX Systems, NIBE, Ideaforge Tech, Jaykay Enter.<BR><BR>Quality Snapshot: Excellent management risk is observed at Hind.Aeronautics, Bharat Electron, and Mazagon Dock, while Good management risk is found at Bharat Dynamics and Cochin Shipyard. Average management risk is noted for Avantel and NIBE, and Below Average management risk is present at DCX Systems, Ideaforge Tech, and Jaykay Enter. For Growth, Excellent growth is seen in Hind.Aeronautics, Bharat Electron, Mazagon Dock, Avantel, NIBE, and the rest. Bharat Dynamics and Cochin Shipyard show Below Average growth, while DCX Systems, Ideaforge Tech, and Jaykay Enter exhibit Below Average growth. In terms of Capital Structure, Excellent capital structure is noted for Hind.Aeronautics, Bharat Electron, Mazagon Dock, Bharat Dynamics, Cochin Shipyard, and Avantel, while Good capital structure is seen at DCX Systems and NIBE, and Below Average capital structure is present at Ideaforge Tech and Jaykay Enter.<BR><BR>Return Snapshot: The peer with the highest 1-year return is Mazagon Dock at 111.91%, while the lowest is Ideaforge Tech at -18.15%. Avantel's 1-year return of 28.55% is higher than that of Ideaforge Tech but lower than Mazagon Dock. Additionally, DCX Systems and Ideaforge Tech have negative six-month returns.

How big is Avantel?

As of 24th July, Avantel Ltd has a market capitalization of 3,841.00 Cr, classifying it as a Small Cap company, with recent Net Sales of 249.12 Cr and a Net Profit of 56.44 Cr; specific values for Shareholder's Funds and Total Assets are unavailable.

As of 24th July, Avantel Ltd has a market capitalization of 3,841.00 Cr, categorizing it as a Small Cap company.<BR><BR>In the latest four quarters, Avantel reported Net Sales of 249.12 Cr and a Net Profit of 56.44 Cr.<BR><BR>The reporting period for the balance sheet data is the latest annual period. However, specific values for Shareholder's Funds and Total Assets are not available.

How has been the historical performance of Avantel?

Avantel has shown consistent growth in net sales and profits, with net sales increasing from INR 77.70 crore in March 2021 to INR 249.13 crore in March 2025, and profit after tax rising from INR 15.33 crore to INR 56.44 crore during the same period, despite fluctuations in earnings per share.

Answer:<BR>The historical performance of Avantel shows a consistent growth in net sales and profits over the years.<BR><BR>Breakdown:<BR>Avantel's net sales have increased significantly from INR 77.70 crore in March 2021 to INR 249.13 crore in March 2025, reflecting a strong upward trend. The total operating income has followed the same trajectory, reaching INR 249.13 crore in March 2025, up from INR 77.70 crore in March 2021. The company's total expenditure, excluding depreciation, has also risen, from INR 55.52 crore in March 2021 to INR 156.63 crore in March 2025. Operating profit, excluding other income, has shown substantial growth, climbing from INR 22.18 crore in March 2021 to INR 92.50 crore in March 2025. Consequently, profit before tax has increased from INR 18.50 crore in March 2021 to INR 79.44 crore in March 2025, while profit after tax has grown from INR 15.33 crore to INR 56.44 crore during the same period. The earnings per share (EPS) have fluctuated, with a notable decline from INR 37.76 in March 2021 to INR 2.19 in March 2025, indicating changes in share capital structure. Overall, Avantel has demonstrated robust growth in sales and profitability over the years, despite variations in EPS.

Is Avantel technically bullish or bearish?

As of December 4, 2025, Avantel's technical trend is neutral with mixed indicators, showing mildly bearish signals from the MACD and Dow Theory, while daily moving averages and OBV indicate mild bullishness, resulting in an overall sideways outlook.

As of 4 December 2025, the technical trend has changed from mildly bullish to sideways. The current technical stance is neutral, with mixed indicators influencing the outlook. The MACD on both weekly and monthly time frames is mildly bearish, while the Bollinger Bands show a bearish signal on the weekly and a mildly bullish signal on the monthly. The daily moving averages are mildly bullish, but the KST and Dow Theory both indicate a mildly bearish stance on the weekly. The OBV shows a mildly bullish trend on the weekly but is mildly bearish on the monthly. Overall, the lack of strong signals from the RSI and the mixed performance across different indicators suggest a neutral position for Avantel at this time.

When is the next results date for Avantel Ltd?

The next results date for Avantel Ltd is 25 January 2026.

The next results date for Avantel Ltd is scheduled for 25 January 2026.

Are Avantel Ltd latest results good or bad?

Avantel Ltd's latest results are concerning, with a net profit decline of 86.35% and a revenue drop of 26.83% in Q3 FY26, marking the third consecutive quarter of revenue decrease. The significant compression in operating and PAT margins, along with a high tax rate, suggests operational challenges and a deteriorating financial position, warranting caution for investors.

Avantel Ltd's latest results indicate a challenging period for the company. In Q3 FY26, the net profit fell sharply to ₹2.74 crore, representing an 86.35% decline year-on-year. Revenue also dropped significantly by 26.83% to ₹51.72 crore compared to the same quarter last year. This decline in revenue marks the third consecutive quarter of sequential revenue decrease, which raises concerns about demand and operational execution.<BR><BR>The operating margin has compressed dramatically from 45.33% to 24.27%, and the PAT margin has similarly eroded from 28.41% to just 5.30%. Additionally, the tax rate has surged to an unusually high 52.92%, further impacting profitability.<BR><BR>Overall, these results reflect significant operational challenges and a deteriorating financial position, leading to a recommendation for investors to exercise caution. The combination of declining profitability, compressed margins, and an expensive valuation creates a concerning risk-reward profile for potential investors.

Should I buy, sell or hold Avantel Ltd?

Which are the latest news on Avantel?

Why is Avantel Ltd falling/rising?

As of 02-Apr, Avantel Ltd's stock price is slightly rising at 134.30, but significant long-term financial concerns persist, including a -23.28% decline in operating profit and negative results over the last four quarters. Despite short-term gains, declining investor participation and a lack of mutual fund interest indicate caution regarding the company's future.

As of 02-Apr, Avantel Ltd's stock price is experiencing a slight rise, currently at 134.30, with a change of 0.05 (0.04%) upwards. This increase can be attributed to several factors. Notably, the stock has outperformed its sector by 0.36% today and has shown a consecutive gain over the last three days, rising by 8.13% during this period. Additionally, the stock's performance over the past week has been strong, with a return of +3.15%, while the benchmark Sensex has declined by -2.60%.<BR><BR>However, despite these positive short-term movements, there are significant concerns regarding the company's long-term growth potential. Avantel Ltd has reported a decline in operating profit of -23.28% and has declared negative results for the last four consecutive quarters, indicating ongoing financial struggles. The company's ability to service debt remains strong, evidenced by a low Debt to EBITDA ratio of 0.47 times, but the overall profitability has been adversely affected, with profits falling by -73.9% over the past year.<BR><BR>Moreover, the stock's liquidity appears adequate for trading, but there has been a notable decrease in investor participation, with delivery volume falling by -34.38% against the five-day average. This decline in participation could signal a lack of confidence among investors, particularly as domestic mutual funds hold no stake in the company, which may reflect their discomfort with the current valuation or business outlook.<BR><BR>In summary, while Avantel Ltd's stock is rising in the short term due to recent gains and sector outperformance, the underlying financial challenges and declining investor interest suggest caution regarding its long-term viability.