(1/18)
About:
Avantel is engaged in the designing, developing & maintaining wireless & satellite communication products, defence electronics, radar systems & the development of network management software applications for its customers mainly from aerospace & defense sectors.
About:
Avantel is engaged in the designing, developing & maintaining wireless & satellite communication products, defence electronics, radar systems & the development of network management software applications for its customers mainly from aerospace & defense sectors.
(2/18)
The company is into 3 broad categories:
• SATCOM:
Avantel developes customized solutions for INSAT based mobile satellite services with digital wireless communications & signal processing products for military & commercial markets.
Customers: ISRO, Indian Navy & NIOT
The company is into 3 broad categories:
• SATCOM:
Avantel developes customized solutions for INSAT based mobile satellite services with digital wireless communications & signal processing products for military & commercial markets.
Customers: ISRO, Indian Navy & NIOT
(3/18)
• Wireless:
The company has developed three systems under Wireless:
1. Radar Subsystems
2. Radios
3. RF Subsystems
• Wireless:
The company has developed three systems under Wireless:
1. Radar Subsystems
2. Radios
3. RF Subsystems
(4/18)
• Software.
The Company develops the following:
1. Embedded Systems
2. Electronic Design Services
3. Application Development
4. Multimedia
5. Visual Simulation & GIS services
• Software.
The Company develops the following:
1. Embedded Systems
2. Electronic Design Services
3. Application Development
4. Multimedia
5. Visual Simulation & GIS services
(5/18)
Clientele:
The company has some of the biggest names in the aerospace and defence sector as it’s client:
1. BOEING
2. L&T
3. DRDO
4. ISRO
5. Indian Navy
6. Indian Airforce
7. BEL
8. Indian Army
9. CSL
10. INCOIS
and many more!
Clientele:
The company has some of the biggest names in the aerospace and defence sector as it’s client:
1. BOEING
2. L&T
3. DRDO
4. ISRO
5. Indian Navy
6. Indian Airforce
7. BEL
8. Indian Army
9. CSL
10. INCOIS
and many more!
(6/18)
Key strengths :
• Established market position:
Avantel has been operating in the niche defence supplies segment for the past three decades. It's SATCOM products are proprietary in nature and being the single vendor, it continues to be the major revenue contributor.
Key strengths :
• Established market position:
Avantel has been operating in the niche defence supplies segment for the past three decades. It's SATCOM products are proprietary in nature and being the single vendor, it continues to be the major revenue contributor.
(7/18)
• Experienced and qualified management :
The founder and present Chairman & MD, Dr. A Vidyasagar is technically qualified and has an extensive industry experience of over 3 decades. The management is ably supported by a qualified team.
• Experienced and qualified management :
The founder and present Chairman & MD, Dr. A Vidyasagar is technically qualified and has an extensive industry experience of over 3 decades. The management is ably supported by a qualified team.
(8/18)
• Strong Performance:
The company has recorded a TOI of ₹104.94 Crs during FY22 (PY:₹77.70 Crs).
The EBITDA has increased to ₹27.76 Crs during FY 22 as against ₹22.18 Crs during FY 21.
PAT has improved to ₹19.18 Crs during FY 22 vs ₹15.33 Crs YoY
• Strong Performance:
The company has recorded a TOI of ₹104.94 Crs during FY22 (PY:₹77.70 Crs).
The EBITDA has increased to ₹27.76 Crs during FY 22 as against ₹22.18 Crs during FY 21.
PAT has improved to ₹19.18 Crs during FY 22 vs ₹15.33 Crs YoY
(9/18)
• Order Book:
Avantel has been receiving repeat orders from the existing clientele on the back of its established track record. It has an unexecuted order book of ~₹230 Cr to be executed over the next 2 years which ensures short to medium term revenue visibility.
• Order Book:
Avantel has been receiving repeat orders from the existing clientele on the back of its established track record. It has an unexecuted order book of ~₹230 Cr to be executed over the next 2 years which ensures short to medium term revenue visibility.
(10/18)
• Reputed clientele:
The company mainly operates in Aerospace & Defence sector and holds Defence Industrial Licenses issued by government and its customers mainly come from the strategic sector such as space, defence, transport and telecommunications.
• Reputed clientele:
The company mainly operates in Aerospace & Defence sector and holds Defence Industrial Licenses issued by government and its customers mainly come from the strategic sector such as space, defence, transport and telecommunications.
(11/18)
Government Boost:
Government's improved focus and increased budgetary allocation to the end user sectors are positives for the company. The company maintains healthy and long term relationships clientele.
Government Boost:
Government's improved focus and increased budgetary allocation to the end user sectors are positives for the company. The company maintains healthy and long term relationships clientele.
(12/18)
Risks:
• Moderate scale of operations:
Though the company faces limited competition as it operates in a niche segment, the low scale of operations limits its bidding capacity to some extent.
Risks:
• Moderate scale of operations:
Though the company faces limited competition as it operates in a niche segment, the low scale of operations limits its bidding capacity to some extent.
(13/18)
• Segment risk:
The company primarily supplies to defence and defence research organisations coming under Ministry of Defence which has over 80% of revenue share exposing the company to segment and customer concentration risks.
• Segment risk:
The company primarily supplies to defence and defence research organisations coming under Ministry of Defence which has over 80% of revenue share exposing the company to segment and customer concentration risks.
(14/18)
• Working Capital Intensive:
The company’s Debtor and Inventory Days run in 3 figure days.
It CCC is around 136 Days.
It assesses long-term liquidity requirements on a periodical basis and manages them through internal accruals and committed credit lines.
• Working Capital Intensive:
The company’s Debtor and Inventory Days run in 3 figure days.
It CCC is around 136 Days.
It assesses long-term liquidity requirements on a periodical basis and manages them through internal accruals and committed credit lines.
(15/18)
What to watch out for:
Positives:
• Revenue growth with sustained margins
• Improved Sector Diversification
• Constant Growth in order book
Negatives.
• Increase in working capital cycle
• Increased use of debt to fund capex
• Margin pressure
What to watch out for:
Positives:
• Revenue growth with sustained margins
• Improved Sector Diversification
• Constant Growth in order book
Negatives.
• Increase in working capital cycle
• Increased use of debt to fund capex
• Margin pressure
(16/18)
Key Ratios & Numbers:
• Market Cap: ₹731cr
• Stock P/E: 29.8
• RoCE: 30%
• RoE 25.6%
• PEG: 0.35
• Sales 3 year CAGR: 27.6%
• NPM last year: 18.3%
• D/E: 0.40
• Int Coverage: 12.3
• Price to Sales: 5.26
Key Ratios & Numbers:
• Market Cap: ₹731cr
• Stock P/E: 29.8
• RoCE: 30%
• RoE 25.6%
• PEG: 0.35
• Sales 3 year CAGR: 27.6%
• NPM last year: 18.3%
• D/E: 0.40
• Int Coverage: 12.3
• Price to Sales: 5.26
(17/18)
The Company is in the business since past 3 decades and has established itself in this space. With many strategic clients in its portfolio. The opportunity lies ahead with GOIs push to the sector, and Avantels ability to continue increase its order book and margins.
The Company is in the business since past 3 decades and has established itself in this space. With many strategic clients in its portfolio. The opportunity lies ahead with GOIs push to the sector, and Avantels ability to continue increase its order book and margins.
(18/18)
What’s your thought about the company and it’s future?
@caniravkaria @kuttrapali26 @chartmojo
What’s your thought about the company and it’s future?
@caniravkaria @kuttrapali26 @chartmojo
• • •
Missing some Tweet in this thread? You can try to
force a refresh
