125crores is a significant amount of order.

update: credit rating has been reaffirmed and withdrawn.

Plus the revenue of IMEDS global will also add in the current quarter.

huge plus IMHO.


Q4 results are good and they have announced a 3 for 1 bonus and 4 rupee dividend on each share.
FY22 EPS ~47; CMP 1347
The company is in a niche business area and doing great since 2016 but didn’t understand the timing of bonus issue.

I believe this stock is reasonably valued from a small-cap standpoint and am seeing limited upside here.

Holding it from 800 levels & will add more if there are any 20-25% corrections from these levels.

Apart from the timing of the Bonus, such a huge bonus ratio after so many years does raise some questions. Looks like there is some plan behind all this. I feel that it could be the first step before selling of a substantial stake to some strategic investor like Tata, Adani or some foreign player. Clearly savings on LTCG Tax on post bonus stake sale will save tens of crores for the promoters. Let’s wait for the movie to play out. I am invested from 450 and do not plan to sell till the business is delivering growth

1 Like

Apart from Good performance in FY 22 and rewarding shareholders with the dividend and bonus shares.
There are few things in recently released AR- 2021-22 worth focussing upon–

  1. In core business, assured business for the next 2-3 years with L&T contract and huge Indian Navy contract.
  2. The diversification process has started which gives scope for re evaluation of company with its entry into Medical devices sector through incorporation of Imeds Global Private Ltd .

    Although giving more information related to types of medical devices as the way forward could be appreciated.
    Disclosure-- Invested

The report mentions this:

In the medical segment, Imeds has developed Skin Staplers, Removers and Oxygen Concentrators.

Thanks for the information, but in my opinion, given the bare minimum revenue contribution from Imeds this Q4 I am not sure whether they will follow the same medical device basket going forward which Imeds used to before being incorporated in Avantel.

Yes. Info about Imeds is lacking. Also this company does not host concalls. We may get some answers through investor relations (though I have never done this).

I have seen Job vacancies in the company for persons involved in Manufacture of ventilators.
This is an atmanirbhar venture.
Also the Bonus and expansion of capital signifies possible NSE listing as well as improving liquidity.
Stock has been beaten up mercilessly even with 40% dividend and 3:1 bonus ans EPS 47.
Can be interesting from now on.
Disc - Have tracking qty at current price