13 Oct A Multibagger stock that made an investment of Rs. 10000 to 35 crores
We have often heard that small cap stocks are amazing. They have huge potential to grow. This multibagger stock has proved it.
We are talking about Avantel Ltd. Avantel Ltd. is from aerospace and defece sector. The company is engaged in the business of designing, manufacturing and maintaining of wireless and satellite communication, embedded systems and software development. Avantel Limited also develops and maintains defence electronics, radar systems. The company is engaged in manufacturing of the communication and signal processing products and also provides health care services. Avantel Ltd. has developed customized solutions for Geosynchronous Satellite (GSAT) based mobile satellite services with advanced microwave, digital wireless communications and signal processing products for military and commercial sector. Avantel also offers customized complete radar solutions. The other specialty of the company is development of network management software applications as per customer’s requirements.
Avantel offers innovative, customized network centric solutions through its products. The company is providing its products and services to Aerospace, Defence, Marrine and Healthcare sectors. Avantel has its own R&D Centre for excellence for design and development of innovative products and solutions. Avantel is providing affordable homegrown healthcare solutions through its subsidiary “iMeds Global Solutions Private Limited”
The market cap of the company is Rs. 4322 crore. The current price of avantel stock is Rs. 178/- (as on 13.10.2024). ROE and ROCE is 47.5% and 39.2% respectively. 52 week high/low is Rs. 224/86.00. Avantel is virtually debt free company.
Shareholding patterns: Promoters 40.06% FIIS 0.11% DIIS 0.62% Public 59.21%
The company has won many orders during year 2024 too. The company has received many orders from defence sector including order of Rs. 5 crore from Mazagaon Dock and Rs. 2.29 crore order Bharat Electronics. The company has an impressive order book with diversified portfolio.
In just 5 years, Avantel’s share has increased by 5320.73%. This means if you had invested Rs. 1 lakh in 2019 and your investment could have grown to around Rs. 53 lakh in 5 years.
Let create proper scenario for the title
If you have invested Rs. 10000 in year 2004. The price of the stock was just Rs. 0.30. You had 33,333 shares. The company has exceptionally grown in 20 years. Avantel has given 2 bonuses and 1 split. The company has also given dividends approximately in each year.
Year 2022 3:1 (Your shares 33,333*3 = 99,999) now 33,333+99,999 = 1,33,332
Year 2023 2:1 (Now No. of shares 1,33,332*2 = 2,66,664) now 266664+1,33,332 = 3,99,996 shares
1 Split 10 2
3,99,996*5= 19,99,980
The price of one share of Avantel is 178/- (as on 13.10.2024)
Your investment has grown surprisingly. Now the huge amount is Rs. 35,59,96,440/-
Still dividend is under calculation. I will provide.
2004-2022 = 32/-* 33333=1066656
2022-2023 = 4*99999=399996
2023-2024= 1.20*1999980= 2399976
Total approximate dividend amount = Rs. 38,66,628
Now we add both = 355996440+3866628=Rs. 35,98,63068
In 20 years = 359863068
Total profit = 359863068/10000=35986 times
In 1 year = 35986/20 = 1799X each years
Wow..Your investment was increased by 1799 times per year.
This is the power of investment in the stock market. This is real compounding in the share market.
Disclaimer: You may consider buying these stocks; but please advising your financial advisor before thinking to buy. The article is based on our personal views and information collected from trusted sources. We are not registered with SEBI.
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