Stock Analysis: Avantel LimitedIntroduction:
Avantel Limited is engaged in the business of designing, developing and maintaining wireless and satellite communication products, defence electronics, radar systems and development of network management software applications for its customers majorly from the aerospace and defence sectors.
Fundamentals:
Market Cap: ₹ 2,907 Cr.;
Stock P/E: 44.3 (Ind. P/E: 42.3 ) 👎;
ROCE: 47.5% 👍;
ROE: 39.2% 👍;
3 Years Sales Growth: 42% 👍;
3 Years Profit Growth: 54% 👍;
3 Years Stock Price CAGR: 110.% 👍
Pros: The company has delivered good profit growth of 42.1% CAGR over last 5 years.
The stock has a good return on equity (ROE) track record: 3 Years ROE 33.3%.
Company is almost debt free.
Technicals:
The stock price of Avantel Limited has been in a downtrend since attaining a peak level of 224 in July 2024.
It is trading in a strong consolidation range between 95 and 105 levels.
Currently the stock is trading below all MA indicators are 20 EMA (Black line), 50 EMA (Orange line), and 100 EMA (Blue line), indicating the weakness in the trend.
Yesterday, it gave a good breakout with volume.
Resistance levels: 158, 176, 211
Support levels: 108, 100
Note: As per technical analysis, downside risk is minimum, and upside potential is huge.
