Avantel gets order from L&T, saw 12% growth in share price

A small-cap defence electronics producer Avantel saw its share price increase by over 12% after an order win from the construction conglomerate Larsen & Toubro (L&T). The order which is for the supply of satellite communication systems, is worth Rs 44.49 crore and is to be accomplish by March 2025.

This recent order is not the only one that Avantel has on the cards. Just a few days ago, the firm received an order of Rs 3.45 crore from Bharat Electronics for more of the satcom systems which is supposed to be executed in July 2025. These systems are significant for supporting voice and data connectivity for sea and air transport. Avantel also designs, develops, and provides support for a range of products in the wireless and satellite communication sectors, including defence electronics and radar. Being in more dynamic sectors such as aerospace and defence gives it a clear long term competitive advantage.

As of 11:45 AM, Avantel share price were priced at Rs 183.8 on the National Stock Exchange, representing a 7.13% increase from the previous day’s close. The development is also laced within the general interest of the market as more than 34 lakhs of shares have been traded in the BSE and NSE combined against a one-month daily average of 8.2 lakhs volumes. The past year has seen Swabhiman snap stocks appreciating 105% which is more than the Nifty 50 while this growth is indicative of a high level of trust among investors managed to restore in as much as double the shareholders investments.

All in all, the latest win for the company in terms of their existing contracts is quite a significant boost to their order book as well as indicates where the company stands in the defence electronics industry. As the firm expands its operations and secures new instructions and declarative orders.