2:1 Bonus Issue: Telecom Stock Hits 20% Upper Circuit, 52-Week High As Net Jumps 142%

Telecommunication sector small cap company Avantel Ltd shares have been witnessing sharp rally ever since it announced its quarterly results and recommended 2:1 bonus issue. Avantel shares hit 20% upper circuit on October 10 and traded new 52-week high yesterday and today. Avantel shares also recorded surge in volume by 3.35 times on October 10. Avantel shares recorded a surge of 269% in last 6-months span only. Check details below:

Avantel Latest Quarterly Results: The company announced a strong surge of 142% in its net profit to Rs 16.7 crore in Q2 as compared to Rs 6.9 crore in second quarter of preceding fiscal. Avantel's revenue soated 50.41% to Rs 54.6 crore in September 2023 quarter as compared to Rs 36.3 crore reported in September quarter of last fiscal. The company's EBITDA zoomed 138% to Rs 25.5 crore in latest quarter against Rs 10.7 crore announced in September 20222 quarter.

Avantel Stock Performance & Return: Current market price of Avantel share on BSE is Rs 334.90 per share with intraday gain of 5.65% on BSE. Its 52-week high price is Rs 343.30 apiece and 52-week low price is Rs 58.80 per share, respectively. The company has a market capitalisation of Rs 2715.70 crore. Avantel shares zoomed 48% in last 2-weeks, gained 92% in last 3-months, soared 336% year-to-date, gained 434% in last 1-year, and recorded a sharp jump of 708% in last 2-years. Avantel stock surged 1620% in last 3-years.

Avantel Recommends 2:1 Bonus Issue: As per the regulatory filing of the company dated October 9, "The Board of Directors has considered, approved and recommended the issue of Bonus Shares in the ratio of 2:1 i.e., 2 Equity Shares for every 1 equity share held by the equity shareholder of the Company as on a Record Date to be fixed thereon. The bonus issue of equity shares is subject to the approval of the shareholders through Postal Ballot, and any other applicable statutory and regulatory approvals, as may be required."

Avantel About: Avantel offers innovative, customized network centric solutions through products that comply with MIL standards for defence platforms including ships/submarines/aircraft/helicopters", as per its official website.

Disclaimer:

The stock just highlights the bonus share, Q2 result, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for ay losses. Please consult a professional advisor.