ScoreWhy is Avantel Ltd ?
1
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.72 times
2
Poor long term growth as Operating profit has grown by an annual rate 8.90% of over the last 5 years
3
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%
4
With ROE of 4.4, it has a Very Expensive valuation with a 12.9 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 11.55%, its profits have fallen by -67.2%
5
Increasing Participation by Institutional Investors
- Institutional investors have increased their stake by 1.19% over the previous quarter and collectively hold 2.67% of the company
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors
6
Market Beating Performance
- Even though the market (BSE500) has generated negative returns of -1.10% in the last 1 year, the stock has been able to generate 11.55% returns
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Avantel should be less than 10%
- Overall Portfolio exposure to Aerospace & Defense should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Aerospace & Defense)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Avantel for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Avantel
11.53%
0.23
49.42%
Sensex
-6.61%
-0.49
13.53%
Quality
Management Risk
Growth
Capital StructureQuality 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
0
Institutional Holding
2.67%
ROCE (avg)
30.66%
ROE (avg)
21.41%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
255
Industry P/E
35
Price to Book Value
12.95
EV to EBIT
137.10
EV to EBITDA
80.19
EV to Capital Employed
12.18
EV to Sales
18.24
PEG Ratio
NA
Dividend Yield
0.12%
ROCE (Latest)
7.70%
ROE (Latest)
4.44%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
No Trend
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend14What 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 quartersMOJO 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 quartersMOJO 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 CrMOJO 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 quartersMOJO 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 CrMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 24.75%
in the last five quartersMOJO 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 quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 0.20
in the last five quartersMOJO 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 yearsMOJO 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 periodMOJO 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 yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (Rs Cr)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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