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Last Updated on: 21 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo
Stock Ticker - BSE: 532406 | NSE: AVANTEL

Avantel Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 21, 2024, 1:22 am

Market Cap 3,898 Cr.
Current Price 160
High / Low 224/86.0
Stock P/E63.2
Book Value 8.45
Dividend Yield0.12 %
ROCE47.5 %
ROE39.2 %
Face Value 2.00
PEG Ratio1.97

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for

Competitors of

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Munoth Communication Ltd 15.0 Cr. 15.6 20.0/8.60 14.90.00 %1.61 %4.27 % 10.0
Indus Towers Ltd 90,846 Cr. 337 461/18212.0 1050.00 %22.1 %24.2 % 10.0
Avantel Ltd 3,898 Cr. 160 224/86.063.2 8.450.12 %47.5 %39.2 % 2.00
ADC India Communications Ltd 817 Cr. 1,776 2,310/81028.2 1580.28 %45.2 %33.7 % 10.0
Shyam Telecom Ltd 28.4 Cr. 25.2 35.0/8.46 24.00.00 %%% 10.0
Industry Average15,683.00 Cr417.0756.9642.400.06%18.64%18.28%8.17

All Competitor Stocks of

Quarterly Result

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Sales15294727363952695459425277
Expenses10213719262733542934233742
Operating Profit58108111219152625191535
OPM %33%28%21%29%29%31%36%22%47%42%46%29%46%
Other Income0010000000000
Interest0001122121011
Depreciation1111111122233
Profit before tax47968916122323171232
Tax %18%18%21%18%18%19%35%28%27%25%22%31%27%
Net Profit467578119171713824
EPS in Rs0.140.230.290.210.280.310.430.360.690.700.540.330.97

Last Updated: October 7, 2024, 8:34 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: October 23, 2024, 3:03 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales431325253452515278105154224230
Expenses33112121304036375677105140136
Operating Profit1024441114152228498494
OPM %24%15%16%16%11%22%28%30%29%26%32%38%41%
Other Income00101151111012
Interest1122211122543
Depreciation12222223345710
Profit before tax8-11112412131824407483
Tax %20%-10%26%9%16%28%23%17%17%19%25%26%
Net Profit7-11111710111519305562
EPS in Rs0.24-0.040.040.020.040.710.390.440.630.791.232.282.54
Dividend Payout %17%0%68%69%92%9%21%15%11%8%5%9%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-114.29%200.00%0.00%0.00%1600.00%-41.18%10.00%36.36%26.67%57.89%83.33%
Change in YoY Net Profit Growth (%)0.00%314.29%-200.00%0.00%1600.00%-1641.18%51.18%26.36%-9.70%31.23%25.44%

has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:33%
5 Years:35%
3 Years:42%
TTM:7%
Compounded Profit Growth
10 Years:51%
5 Years:42%
3 Years:54%
TTM:42%
Stock Price CAGR
10 Years:53%
5 Years:99%
3 Years:139%
1 Year:40%
Return on Equity
10 Years:27%
5 Years:31%
3 Years:33%
Last Year:39%

Last Updated: Unknown

Balance Sheet

Last Updated: October 15, 2024, 2:16 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital4444444444164949
Reserves1917161617333948628096123157
Borrowings4119910000316301817
Other Liabilities5333364151711123454
Total Liabilities333432323443476787110154223277
Fixed Assets16151413131212141625264449
CWIP000000001791620
Investments0000000005121720
Other Assets17181819213136537073108146187
Total Assets333432323443476787110154223277

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +8-244294345-30468
Cash from Investing Activity +-6-10-1-24-10-4220-13-45
Cash from Financing Activity +-12-4-2-0-12-4-3-398-23
Net Cash Flow1-100-01-000-100

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow6.00-9.00-5.00-5.00-6.0011.0014.0015.0019.0012.0019.0066.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days991216761105631392086212694104
Inventory Days224595511901226213934130257219
Days Payable520141238443451728
Cash Conversion Cycle11612150559728214719730591251334295
Working Capital Days8038719120417210115421724206224159
ROCE %38%0%9%9%9%29%33%29%33%30%37%48%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters40.14%40.14%40.14%40.14%40.14%40.14%40.10%40.10%40.10%40.06%40.06%40.06%
FIIs0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.01%0.11%
DIIs0.00%0.00%0.00%0.00%0.00%0.00%0.03%0.01%0.01%0.00%0.36%0.65%
Public59.86%59.86%59.86%59.86%59.87%59.86%59.88%59.89%59.89%59.94%59.56%59.18%
No. of Shareholders7,9768,00411,58913,60916,12116,42821,61447,13582,75998,0521,49,0811,94,783

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.0010.0010.0010.0010.00
Basic EPS (Rs.)2.2818.5247.3037.8226.53
Diluted EPS (Rs.)2.2618.5247.3037.8226.53
Cash EPS (Rs.)2.5721.7057.0945.2933.21
Book Value[Excl.RevalReserv]/Share (Rs.)7.0568.98206.46163.35127.43
Book Value[Incl.RevalReserv]/Share (Rs.)7.0568.98206.46163.35127.43
Dividend / Share (Rs.)0.201.004.004.004.00
Revenue From Operations / Share (Rs.)9.2095.12258.79191.60128.03
PBDIT / Share (Rs.)3.5230.8071.8256.8440.88
PBIT / Share (Rs.)3.2327.6262.0349.3634.19
PBT / Share (Rs.)3.0624.6258.3045.6332.09
Net Profit / Share (Rs.)2.2818.5247.2937.8126.53
PBDIT Margin (%)38.2732.3727.7529.6631.92
PBIT Margin (%)35.1229.0323.9625.7626.70
PBT Margin (%)33.2525.8822.5223.8125.06
Net Profit Margin (%)24.7619.4718.2719.7320.71
Return on Networth / Equity (%)32.3426.8422.9023.1420.81
Return on Capital Employeed (%)44.1738.7928.6728.5524.59
Return On Assets (%)24.8619.5217.4117.6716.08
Total Debt / Equity (X)0.060.240.150.000.00
Asset Turnover Ratio (%)1.191.171.071.010.90
Current Ratio (X)3.182.763.113.894.69
Quick Ratio (X)2.161.612.373.734.20
Inventory Turnover Ratio (X)1.722.525.286.993.70
Dividend Payout Ratio (NP) (%)2.925.398.455.2815.07
Dividend Payout Ratio (CP) (%)2.594.607.004.4112.04
Earning Retention Ratio (%)97.0894.6191.5594.7284.93
Cash Earning Retention Ratio (%)97.4195.4093.0095.5987.96
Interest Coverage Ratio (X)20.5310.2819.2715.2319.42
Interest Coverage Ratio (Post Tax) (X)14.287.1813.6911.1313.61
Enterprise Value (Cr.)2407.62681.80426.83110.4359.09
EV / Net Operating Revenue (X)10.754.424.071.421.14
EV / EBITDA (X)28.0913.6514.654.793.56
MarketCap / Net Operating Revenue (X)10.764.253.951.971.29
Retention Ratios (%)97.0794.6091.5494.7184.92
Price / BV (X)14.055.854.952.321.30
Price / Net Operating Revenue (X)10.764.253.951.971.29
EarningsYield0.020.040.040.090.16

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of as of December 21, 2024 is: 209.59

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of December 21, 2024, is Undervalued by 30.99% compared to the current share price 160.00

Intrinsic Value of as of December 21, 2024 is: 276.99

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 21, 2024, is Undervalued by 73.12% compared to the current share price 160.00

Last 5 Year EPS CAGR: 32.16%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 25.33%, which is a positive sign.
  2. The company has higher reserves (55.62 cr) compared to borrowings (9.77 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (83.54 cr) and profit (22.92 cr) over the years.
  1. The stock has a high average Working Capital Days of 176.58, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 270.08, which may not be favorable.
  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in :
    1. Net Profit Margin: 24.76%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 44.17% (Industry Average ROCE: 18.64%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 32.34% (Industry Average ROE: 18.28%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 14.28
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 2.16
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 63.2 (Industry average Stock P/E: 56.96)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.06
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Avantel Ltd. is a Public Limited Listed company incorporated on 30/05/1990 and has its registered office in the State of Andhra Pradesh, India. Company’s Corporate Identification Number(CIN) is L72200AP1990PLC011334 and registration number is 011334. Currently Company is involved in the business activities of Other telecommunications activities. Company’s Total Operating Revenue is Rs. 104.94 Cr. and Equity Capital is Rs. 4.06 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Telecom EquipmentSy. No. 141, Plot No 47/P, Vishakapatnam Andhra Pradesh 531163cs@avantel.in
http://www.avantel.in
Management
NamePosition Held
Dr. Abburi VidyasagarChairman & Managing Director
Mrs. Abburi SaradaWhole Time Director
Mr. Abburi Siddhartha SagarWhole Time Director
Mr. Yalamanchili KishoreIndependent Director
Mr. Naveen NandigamIndependent Director
Mr. Myneni Narayana RaoIndependent Director
Mr. Ramchander VyasabhattuIndependent Director
Dr. Ajit T KalghatgiIndependent Director
Ms. Harita VasireddiIndependent Director

FAQ

What is the latest intrinsic value of ?

The latest intrinsic value of as on 21 December 2024 is ₹209.59, which is 30.99% higher than the current market price of ₹160.00. The stock has a market capitalization of 3,898 Cr. and recorded a high/low of 224/86.0 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹157 Cr and total liabilities of ₹277 Cr.

What is the Market Cap of ?

The Market Cap of is 3,898 Cr..

What is the current Stock Price of as on 21 December 2024?

The current stock price of as on 21 December 2024 is 160.

What is the High / Low of stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of stocks is 224/86.0.

What is the Stock P/E of ?

The Stock P/E of is 63.2.

What is the Book Value of ?

The Book Value of is 8.45.

What is the Dividend Yield of ?

The Dividend Yield of is 0.12 %.

What is the ROCE of ?

The ROCE of is 47.5 %.

What is the ROE of ?

The ROE of is 39.2 %.

What is the Face Value of ?

The Face Value of is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in . Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE