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Last Updated on: 20 April, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 532406 | NSE: AVANTEL

Fundamental Analysis of Avantel Ltd

Basic Stock Data

Last Updated: April 19, 2024, 10:30 am

Market Cap 2,706 Cr.
Current Price 111
High / Low140/31.0
Stock P/E51.2
Book Value 5.58
Dividend Yield0.06 %
ROCE37.1 %
ROE30.7 %
Face Value 2.00

Data Source: screener.in

Competitors of Avantel Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
MRO-TEK Realty Ltd 152 Cr. 81.395.8/51.129.5 33.10.00 %1.77 %5.55 % 5.00
NELCO Ltd 1,722 Cr. 754894/52974.1 48.60.27 %21.6 %20.5 % 10.0
ITI Ltd 24,397 Cr. 254384/92.7 21.70.00 %3.60 %14.7 % 10.0
Prabhat Technologies (India) Ltd 107 Cr. 100330/85.0 27.80.00 %2.10 %3.87 % 10.0
Optiemus Infracom Ltd 2,324 Cr. 272381/16046.5 44.90.55 %13.5 %11.7 % 10.0
Industry Average5,740.40 Cr292.2630.0235.220.16%8.51%11.26%9.00

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales25291415294727363952695459
Expenses1822910213719262733542934
Operating Profit77558108111219152625
OPM %28%26%34%33%28%21%29%29%31%36%22%47%42%
Other Income0000010000000
Interest0000001122121
Depreciation1111111111122
Profit before tax67447968916122323
Tax %18%15%18%18%18%21%18%18%19%35%28%27%25%
Net Profit5634675781191717
EPS in Rs0.200.230.130.140.230.290.210.280.310.430.360.690.70

Last Updated: April 10, 2024, 6:18 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: April 6, 2024, 4:45 am

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales26431325253452515278105154235
Expenses2033112121304036375677105150
Operating Profit610244411141522284984
OPM %24%24%15%16%16%11%22%28%30%29%26%32%36%
Other Income00010115111101
Interest0112221112255
Depreciation1122222233456
Profit before tax58-111124121318244074
Tax %16%20%10%26%9%16%28%23%17%17%19%25%
Net Profit47-111117101115193053
EPS in Rs0.150.24-0.040.040.020.040.710.390.440.630.791.232.18
Dividend Payout %23%17%0%68%69%92%9%21%15%11%8%5%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)75.00%-114.29%200.00%0.00%0.00%1600.00%-41.18%10.00%36.36%26.67%57.89%
Change in YoY Net Profit Growth (%)0.00%-189.29%314.29%-200.00%0.00%1600.00%-1641.18%51.18%26.36%-9.70%31.23%

Growth

Compounded Sales Growth
10 Years:14%
5 Years:24%
3 Years:44%
TTM:58%
Compounded Profit Growth
10 Years:17%
5 Years:36%
3 Years:41%
TTM:100%
Stock Price CAGR
10 Years:63%
5 Years:97%
3 Years:150%
1 Year:232%
Return on Equity
10 Years:22%
5 Years:27%
3 Years:28%
Last Year:31%

Last Updated: April 16, 2024, 11:36 am

Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital444444444441616
Reserves141917161617333948628096119
Borrowings341199100003163020
Other Liabilities453333641517111228
Total Liabilities25333432323443476787110154183
Fixed Assets9161514131312121416252627
CWIP30000000017912
Investments000000000051213
Other Assets1417181819213136537073108132
Total Assets25333432323443476787110154183

Reserves and Borrowings Chart

Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 68-244294345-304
Cash from Investing Activity -4-6-10-1-24-10-4220-13
Cash from Financing Activity -3-12-4-2-0-12-4-3-398
Net Cash Flow-01-100-01-000-10

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow3.006.00-9.00-5.00-5.00-6.0011.0014.0015.0019.0012.0019.00

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 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days100991216761105631392086212694
Inventory Days284224595511901226213934130257
Days Payable395201412384434517
Cash Conversion Cycle34611612150559728214719730591251334
Working Capital Days1328038719120417210115421724206224
ROCE %25%38%0%9%9%9%29%33%29%33%30%37%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters40.36%40.36%40.14%40.14%40.14%40.14%40.14%40.14%40.14%40.10%40.10%40.10%
DIIs0.00%0.00%0.39%0.00%0.00%0.00%0.00%0.00%0.00%0.03%0.01%0.01%
Public59.64%59.64%59.47%59.86%59.86%59.86%59.86%59.87%59.86%59.88%59.89%59.89%
No. of Shareholders6,4106,9187,8877,9768,00411,58913,60916,12116,42821,61447,13582,759

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)18.5247.3037.8226.5323.45
Diluted EPS (Rs.)18.5247.3037.8226.5323.45
Cash EPS (Rs.)21.7057.0945.2933.2128.50
Book Value[Excl.RevalReserv]/Share (Rs.)68.98206.46163.35127.43106.15
Book Value[Incl.RevalReserv]/Share (Rs.)68.98206.46163.35127.43106.15
Dividend / Share (Rs.)1.004.004.004.005.00
Revenue From Operations / Share (Rs.)95.12258.79191.60128.03124.56
PBDIT / Share (Rs.)30.8071.8256.8440.8836.90
PBIT / Share (Rs.)27.6262.0349.3634.1931.85
PBT / Share (Rs.)24.6258.3045.6332.0930.42
Net Profit / Share (Rs.)18.5247.2937.8126.5323.45
PBDIT Margin (%)32.3727.7529.6631.9229.62
PBIT Margin (%)29.0323.9625.7626.7025.56
PBT Margin (%)25.8822.5223.8125.0624.42
Net Profit Margin (%)19.4718.2719.7320.7118.82
Return on Networth / Equity (%)26.8422.9023.1420.8122.08
Return on Capital Employeed (%)38.7928.6728.5524.5929.00
Return On Assets (%)19.5217.4117.6716.0820.11
Total Debt / Equity (X)0.240.150.000.000.00
Asset Turnover Ratio (%)1.171.071.010.901.12
Current Ratio (X)2.763.113.894.6912.39
Quick Ratio (X)1.612.373.734.2011.50
Inventory Turnover Ratio (X)2.525.286.993.702.48
Dividend Payout Ratio (NP) (%)5.398.455.2815.0729.85
Dividend Payout Ratio (CP) (%)4.607.004.4112.0424.56
Earning Retention Ratio (%)94.6191.5594.7284.9370.15
Cash Earning Retention Ratio (%)95.4093.0095.5987.9675.44
Interest Coverage Ratio (X)10.2819.2715.2319.4225.81
Interest Coverage Ratio (Post Tax) (X)7.1813.6911.1313.6117.40
Enterprise Value (Cr.)681.80426.83110.4359.0981.28
EV / Net Operating Revenue (X)4.424.071.421.141.61
EV / EBITDA (X)13.6514.654.793.565.43
MarketCap / Net Operating Revenue (X)4.253.951.971.291.81
Retention Ratios (%)94.6091.5494.7184.9270.14
Price / BV (X)5.854.952.321.302.12
Price / Net Operating Revenue (X)4.253.951.971.291.81
EarningsYield0.040.040.090.160.10

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 87.76

The stock is overvalued by 20.94% compared to the current price ₹111

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.

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 23.42%, which is a positive sign.
  2. The company has higher reserves (44.31 cr) compared to borrowings (8.85 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (68.69 cr) and profit (16.92 cr) over the years.
  1. The stock has a high average Working Capital Days of 174.33, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 274.33, which may not be favorable.

Stock Analysis

  • 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 Avantel Ltd:
    1. Net Profit Margin: 19.47%
      • 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: 38.79% (Industry Average ROCE: 8.51%)
      • 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%: 26.84% (Industry Average ROE: 11.26%)
      • 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): 7.18
      • 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: 1.61
      • 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: 51.2 (Industry average Stock P/E: 30.02)
      • 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: 0.24
      • 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

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. Eluru Bala Venkata Ramana GuptaIndependent Director
Mr. Myneni Narayana RaoIndependent Director
Mr. Yalamanchili KishoreIndependent Director
Mr. Naveen NandigamIndependent Director
Mr. Ramchander VyasabhattuIndependent Director

Avantel Ltd. Share Price Update

Share PriceValue
Today₹111.24
Previous Day₹105.83

FAQ

What is the latest fair value of Avantel Ltd?

The latest fair value of Avantel Ltd is 87.76.

What is the Market Cap of Avantel Ltd?

The Market Cap of Avantel Ltd is 2,706 Cr..

What is the current Stock Price of Avantel Ltd as on 20 April 2024?

The current stock price of Avantel Ltd as on 20 April 2024 is 111.

What is the High / Low of Avantel Ltd stocks in FY 2024?

In FY 2024, the High / Low of Avantel Ltd stocks is ₹140/31.0.

What is the Stock P/E of Avantel Ltd?

The Stock P/E of Avantel Ltd is 51.2.

What is the Book Value of Avantel Ltd?

The Book Value of Avantel Ltd is 5.58.

What is the Dividend Yield of Avantel Ltd?

The Dividend Yield of Avantel Ltd is 0.06 %.

What is the ROCE of Avantel Ltd?

The ROCE of Avantel Ltd is 37.1 %.

What is the ROE of Avantel Ltd?

The ROE of Avantel Ltd is 30.7 %.

What is the Face Value of Avantel Ltd?

The Face Value of Avantel Ltd 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 Avantel Ltd. 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