389.77% Gain From 52W Low: Multibagger Stock Sets Record Date For 2:1 Bonus Shares

With a market valuation of Rs 2600 Cr, Avantel Ltd is a small-cap company in the telecommunications industry. The corporation primarily operates in four verticals: electronic warfare, radar systems, satellite communications, and HF communications. With more than thirty years of expertise, Avantel has designed, developed, manufactured, deployed, and supplied after-market support for a wide range of defense electronics products. In addition to being a multibagger stock, the company has announced a record date for bonus shares, which is extremely pleasing for market observers.

"This is to inform you that pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has fixed Friday, November 24, 2023 as the "Record Date" for the purpose of ascertaining the eligibility of shareholders entitled for issue of Bonus Equity Shares of the Company in the ratio of 2:1, i.e., 2 (Two) Equity Shares of Rs.2/- each for every 1 (One) existing Equity Share of Rs.2/- each, which was recommended by the Board of Directors of the Company vide its meeting held on Monday, October 9, 2023 and for which approval of the shareholders have already been obtained through postal ballot on Saturday, November 11, 2023," said Avantel in a stock exchange filing.

On a consolidated basis, the company reported revenue from operations of Rs 54.33 crore in the September 2023 quarter up 49.99% from Rs. 36.23 crore in the September 2022 quarter. It reported a consolidated net profit of Rs. 16.07 crore in Q2FY24 up 161.65% from Rs. 6.14 crore in Q2FY23. EBITDA jumped by 151.09% to Rs. 25.36 crore in the quarter under review from Rs. 10.10 crore in the same quarter last year. From Rs. 3.79 in the September 2022 quarter to Rs. 1.98 in the September 2023 quarter, Avantel's earnings per share has declined.

On 12th November on the occasion of Muhurat trading the shares of Avantel closed on the BSE at Rs 323.25 apiece up by 3.81% from the previous close of Rs 311.40. The scrip reached a 52-week-high of Rs 343.30 on (11/10/2023) and a 52-week-low of Rs 66.00 on (23/12/2022), indicating that at the current market price, the stock has gained 389.77% from its 1-year low and is trading at a discount of 5.84% from its 1 year high. Over the last year, the stock has produced a 289.32% multibagger return; so far in 2023, the scrip has delivered a 321.56% multibagger return on a year-to-date basis. During Q2FY24, the company posted promoters' shareholding of 40.10% and public stake of 59.89%.