Telecom stock hits 5% upper circuit after receiving order from US based counter drone company

Published 02-12-2024, 04:04 pm
Updated 02-12-2024, 06:15 pm
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During the monday trading session, the shares of one of the leading manufacturers of infra services in India hits 5% upper circuit in the days trade after receiving work order from the leading counter drone company from the United States.

With the market capitalization of Rs. 85 crores on Monday, the shares of Kavveri Telecom (BCBA:TECO2m) Products Ltd (NS:KATL) hit a upper circuit 5% and closed at Rs.42.44 compared to its previous closing price of Rs.40.42.

What happened

Kavveri Defence and Wireless Technologies Limited has secured a major order to design and develop the world’s first complex penta-band high-gain antenna for a leading US-based counter-drone company. This order highlights Kavveri’s expertise in providing advanced antenna solutions for defence and critical communication applications.

The innovative penta-band antenna will support five distinct frequency bands, offering superior performance and versatility. Kavveri’s cutting-edge technology will integrate seamlessly into the customer’s systems, boosting their counter-drone capabilities with reliable, efficient, and robust communication solutions.and the order worth should yet to be disclosed.

About the company

Kavveri Telecom Products Ltd , established in 1991, is a prominent telecom manufacturer that delivers high-quality hardware products and solutions for the telecommunications sector. The company specializes in the design, development, testing, and implementation of a wide range of products, overseeing the entire process from concept to deployment.

Kavveri Telecom is well-positioned to provide a comprehensive selection of top-tier products and solutions, catering to the hardware needs of telecom manufacturers, service providers, and end-users.

Financials

The company’s revenue rose by 133 percent, growing from Rs 0.39 crore in September FY23 to Rs 1.30 crore in September FY24. Meanwhile, Net profit saw an increase, rising from a loss of Rs 0.37 crore in September FY23 to profit of Rs 0.48 crore in September FY24 during the period.

Key Financial ratios

Kavveri Defence and Wireless Technologies Limited has a Return on Equity (RoE) of 0.02% and a Return on Capital Employed (RoCE) of 0.05% and Furthermore, the company’s debt-to-equity ratio is 0.09.

Stock Performance

The stock has provided impressive multibagger returns of about 186 percent over the year, along with a remarkable 196 percent gain in the last six months on 2024, it has continued to perform strongly.

Written by Sridhar J

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