Avantel

While co might give transcript like last year , some key take aways from Avantel AGM – 23rd June

• Order book healthy 188 cr June end( excluding 60 cr+ for current qtr) – Q1 is leanest usually and this might set a good tone for start of year
• SDR is a key opportunity with $300M per year type spends – from 100% import to 35% import(rest indigenous now) for Avantel, expect FY 25 to be step up on offering breadth(band range of SDR) hence ability for higher/all of tender participation – as of now selective players in this space and Avantel feels we are way ahead – SCA complaint SDR, already developed HF
• One large tender(SDR) trials in august for Indian army/airforce – seemed good probability candidate
• Margins 20%+ (NPM) doable and guided for 25% type rev growth CAGR for coming few years(though might do a notch better per past trend and tailwinds, interestingly in opening speech Mr Abburi indicated similar growth like last 2 year to continue)
• med equipment – Inmeds break even in FY 25, some products commercialized (stapler etc) and some in testing
• Capex excluding building 15 cr for this and next year – all through internal accruals, have enough land for expansion
• Radar is space they want to focus more from FY 25 onwards (seems expecting demand side clarity via some tenders)
• Railways – L&T – RTIS – order to be completed by Oct 23, next set of 12K trains (current order was 6K type) could be out by Year end and Avantel stands a good chance
• Lockheed martin order also to be completed by Sept
• Share split announcement soon and NSE listing next year

All in all appears given small base/size and order book visibility + upcoming sizable tenders, they can continue to deliver on similar trajectory growth. Sector tailwinds help further.

D: Invested