This smallcap company has received supply orders amounting greater than its FY21 revenue

The stock has hit an upper circuit of 20%.

Avantel Ltd, engaged in the business of telecom equipment, has been trending on Dalal Street as it has rallied by over 20%, thereby hitting the upper circuit. The share has been trading in the green territory today. The scrip opened at Rs 811 and made a day’s high of Rs 892.40, where the trading in the stock has been halted by the exchange.

Such tremendous reaction has come on the back of the company receiving a supply order of Loco devices for implementation of RTIS phase – 2 (Real Time Train Information system) for an amount of Rs 125.68 crore. This amount is quite significant from the company’s perspective as it had recorded net sales of Rs 77.7 crore in FY21. Also, it has a market cap of just Rs 361.82 crore, which clearly reflects the importance of this order and of course the upper circuit is the reaction of the same.

Talking about its recent quarterly results, in Q3FY22, revenue grew by 16.43% YoY to Rs 29.09 crore from Rs 24.99 crore in Q3FY21. On a sequential basis, the top-line was up by 88.47%. PBIDT (Ex OI) was reported at Rs 8.11 crore, up by 14.53% as compared to the year-ago period and the corresponding margin was reported at 27.89%, contracting by 46 basis points YoY. PAT was reported at Rs 5.62 crore, up by 12.99% from Rs 4.97 crore in the same quarter for the previous fiscal year. The PAT margin stood at 19.31% in Q3FY22 contracting from 19.9% in Q3FY21.

Avantel Ltd was established to offer telecom products and software solutions. Avantel is actively involved in the design and development of products based on High Power Broadband Wireless, Satellite Communication and Broadband access technologies. The design, development and integration of wireless and access products are carried out using standard and proprietary software tools.

The stock has a 52-week high of Rs 949 and a 52-week low of Rs 360.55.