Shares of Avantel Ltd surged 20% to hit a record high today after the firm announced its earnings for quarter ended September 2023. The board of the telecom equipment firm also approved issue of bonus shares in the ratio of 2:1. Avantel stock hit upper circuit of 20% at Rs 324.10 on BSE.
Avantel shares opened higher at Rs 309 against the previous close of Rs 270.10 on BSE. Market cap of the firm climbed to Rs 2564.87 crore on BSE. The stock has risen 425% in a year and zoomed 311% in 2023. Avantel shares have a beta of 1.1, indicating high volatility in a year.
Avantel shares hit a 52-week low of Rs 58.20 on October 10, 2022.
In terms of technicals, the relative strength index (RSI) of the Avantel stock stands at 65.6, signaling it’s trading neither in the overbought nor in the oversold zone. Avantel shares are trading higher than the 5 day, 20 day, 50 day, 100 day, 150 day and 200 day averages. Avantel stock zoomed 1518% in three years and delivered 673% returns in two years.
The firm reported a 142% rise in net profit to Rs 16.7 crore in Q2 against Rs 6.9 crore in the second quarter of the previous fiscal. Revenue zoomed 50.41% to Rs 54.6 crore in the September 2023 quarter against Rs 36.3 crore in the September quarter of the previous fiscal.
EBITDA surged 138% to Rs 25.5 crore in the last quarter against Rs 10.7 crore in the September 2022 quarter.
“The Board of Directors has considered, approved and recommended the issue of Bonus Shares in the ratio of 2:1 i.e., 2 Equity Shares for every 1 equity share held by the equity shareholder of the Company as on a Record Date to be fixed thereon,” said the firm in a communication to the bourses.
The board also cleared an increase in authorised share capital of the company.
“The Board of Directors has considered and approved the increase in the Authorized Share Capital of the Company from Rs.20,00,00,000/- (Rupees Twenty Crores Only) divided into 10,00,00,000 (Ten Crores) Equity Shares of Rs.2/- (Rupees Two Only) each to Rs.60,00,00,000/- (Rupees Sixty Crores only) divided into 30,00,00,000 (Thirty Crores) Equity Shares of Rs.2/- (Rupees Two Only) each and consequential alteration in the Memorandum of Association of the Company, subject to the approval of shareholders of the Company through Postal Ballot,” the firm said in a communication to bourses.
Avantel is engaged in the manufacturing of wireless front-end, satellite communication, embedded systems, signal processing, network management and software development and rendering related customer support services. Business Today