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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Mishra Dhatu Nig

Unimech Aero.

Rossell Techsys

Paras Defence

Avantel

Jaykay Enter.

Sika Interplant

Swan Defence

NIBE

Ideaforge Tech

CFF Fluid

Why is Avantel Ltd ?

Poor long term growth as Operating profit has grown by an annual rate 8.90% of over the last 5 years

Flat results in Jun 26

INTEREST(9M) At Rs 5.34 cr has Grown at 96.32%
OPERATING CF(Y) Lowest at Rs 10.05 Cr
PAT(9M) At Rs 12.90 cr has Grown at -56.11%

With ROE of 4.4, it has a Very Expensive valuation with a 12.3 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -6.69%, its profits have fallen by -67.2%

Below par performance in long term as well as near term

Along with generating -6.69% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months

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, Medium Return

Absolute

Risk Adjusted

Volatility

Avantel

-6.62%

-0.15

45.25%

Sensex

-8.3%

-0.62

13.46%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

24.63%

EBIT Growth (5y)

8.90%

EBIT to Interest (avg)

14.44

Debt to EBITDA (avg)

0.50

Net Debt to Equity (avg)

0.07

Sales to Capital Employed (avg)

1.04

Tax Ratio

38.74%

Dividend Payout Ratio

35.44%

Pledged Shares

Institutional Holding

2.67%

ROCE (avg)

30.66%

ROE (avg)

21.41%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

242

Industry P/E

Price to Book Value

12.29

EV to EBIT

130.23

EV to EBITDA

76.17

EV to Capital Employed

11.57

EV to Sales

17.32

PEG Ratio

Dividend Yield

0.13%

ROCE (Latest)

7.70%

ROE (Latest)

4.44%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bullish

No Trend

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

14What is working for the Company

PBDIT(Q)

Highest at Rs 17.43 cr.

PBT LESS OI(Q)

Highest at Rs 8.58 cr.

DPR(Y)

Highest at 35.44%

NET SALES(Q)

Highest at Rs 70.42 cr

OPERATING PROFIT TO NET SALES(Q)

Highest at 24.75%

PAT(Q)

Highest at Rs 5.39 cr.

EPS(Q)

Highest at Rs 0.20

-13What is not working for the Company

INTEREST(9M)

At Rs 5.34 cr has Grown at 96.32%

OPERATING CF(Y)

Lowest at Rs 10.05 Cr

PAT(9M)

At Rs 12.90 cr has Grown at -56.11%

ROCE(HY)

Lowest at 8.13%

Loading Valuation Snapshot...

Here's what is working for Avantel

Operating Profit (PBDIT) - Quarterly

Highest at Rs 17.43 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 8.58 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 8.58 cr has Grown at 54.7% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 5.55 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Net Sales - Quarterly

Highest at Rs 70.42 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Net Sales - Quarterly

At Rs 70.42 cr has Grown at 26.4% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 55.72 Cr

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 24.75%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit After Tax (PAT) - Quarterly

Highest at Rs 5.39 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 0.20

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Dividend Payout Ratio (DPR) - Annually

Highest at 35.44%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Avantel

Interest - Nine Monthly

At Rs 5.34 cr has Grown at 96.32%

over preceding nine months period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Operating Cash Flow - Annually

Lowest at Rs 10.05 Cr and Fallen

each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (Rs Cr)