Avantel Ltd (AVANTEL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Jaykay Enter.

Paras Defence

Sika Interplant

Rossell Techsys

Swan Defence

MTAR Technologie

Avantel

Mishra Dhatu Nig

Ideaforge Tech

DCX Systems

Unimech Aero.

Why is Avantel Ltd ?

With a fall in Net Profit of -67.34%, the company declared Very Negative results in Sep 25

The company has declared negative results for the last 3 consecutive quarters
The company has declared negative results in Mar 25 after 2 consecutive negative quarters
OPERATING PROFIT TO INTEREST(Q) Lowest at 8.98 times
PAT(Q) At Rs 4.27 cr has Fallen at -67.3% (vs previous 4Q average)
NET SALES(Q) At Rs 55.42 cr has Fallen at -11.1% (vs previous 4Q average)

With ROE of 10.4, it has a Very Expensive valuation with a 12.4 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -8.33%, its profits have fallen by -42.7%

Despite the size of the company, domestic mutual funds hold only 0% of the company

Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 1.69% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -8.33% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Aerospace & Defense)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Avantel for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Avantel

-8.24%

-0.15

56.28%

Sensex

4.55%

0.38

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

28.56%

EBIT Growth (5y)

24.66%

EBIT to Interest (avg)

16.19

Debt to EBITDA (avg)

0.44

Net Debt to Equity (avg)

-0.06

Sales to Capital Employed (avg)

1.07

Tax Ratio

30.60%

Dividend Payout Ratio

8.67%

Pledged Shares

Institutional Holding

0.82%

ROCE (avg)

36.43%

ROE (avg)

23.86%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

119

Industry P/E

Price to Book Value

12.42

EV to EBIT

79.54

EV to EBITDA

61.12

EV to Capital Employed

13.12

EV to Sales

17.60

PEG Ratio

Dividend Yield

0.13%

ROCE (Latest)

16.50%

ROE (Latest)

10.40%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 495.60 cr

-22What is not working for the Company

OPERATING PROFIT TO INTEREST(Q)

Lowest at 8.98 times

PAT(Q)

At Rs 4.27 cr has Fallen at -67.3% (vs previous 4Q average

NET SALES(Q)

At Rs 55.42 cr has Fallen at -11.1% (vs previous 4Q average

DEBT-EQUITY RATIO(HY)

Highest at 0.95 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.22 times

INTEREST(Q)

Highest at Rs 1.26 cr

Loading Valuation Snapshot...

Here's what is working for Avantel

Cash and Cash Equivalents - Half Yearly

Highest at Rs 495.60 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Avantel

Operating Profit to Interest - Quarterly

Lowest at 8.98 times and Fallen

each quarter in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Profit After Tax (PAT) - Quarterly

At Rs 4.27 cr has Fallen at -67.3% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 13.07 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Net Sales - Quarterly

At Rs 55.42 cr has Fallen at -11.1% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 62.32 Cr

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Interest - Quarterly

At Rs 1.26 cr has Grown at 125,999,900.00%

Quarter on Quarter (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Interest - Quarterly

Highest at Rs 1.26 cr

in the last five quarters and Increased by 125,999,900.00 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Debt-Equity Ratio - Half Yearly

Highest at 0.95 times

in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio- Half Yearly

Lowest at 0.22 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio