Avantel Ltd
Avantel Ltd Fundamental Analysis
Avantel Ltd (AVANTEL.NS) shows weak financial fundamentals with a PE ratio of 198.84, profit margin of 7.85%, and ROE of 6.46%. The company generates $2.0B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 46.9/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AVANTEL.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakAVANTEL.NS struggles to generate sufficient returns from assets.
Valuation Score
ModerateAVANTEL.NS shows balanced valuation metrics.
Growth Score
ModerateAVANTEL.NS shows steady but slowing expansion.
Financial Health Score
ExcellentAVANTEL.NS maintains a strong and stable balance sheet.
Profitability Score
WeakAVANTEL.NS struggles to sustain strong margins.
Key Financial Metrics
Is AVANTEL.NS Expensive or Cheap?
P/E Ratio
AVANTEL.NS trades at 198.84 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, AVANTEL.NS's PEG of -3.75 indicates potential undervaluation.
Price to Book
The market values Avantel Ltd at 10.03 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 68.21 times EBITDA. This signals the market has high growth expectations.
How Well Does AVANTEL.NS Make Money?
Net Profit Margin
For every $100 in sales, Avantel Ltd keeps $7.85 as profit after all expenses.
Operating Margin
Core operations generate 13.70 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.46 in profit for every $100 of shareholder equity.
ROA
Avantel Ltd generates $4.20 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Avantel Ltd produces operating cash flow of $319.22M, showing steady but balanced cash generation.
Free Cash Flow
Avantel Ltd generates weak or negative free cash flow of $-680.70M, restricting financial flexibility.
FCF Per Share
Each share generates $-2.56 in free cash annually.
FCF Yield
AVANTEL.NS converts -2.24% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
198.84
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.75
vs 25 benchmark
P/B Ratio
Price to book value ratio
10.03
vs 25 benchmark
P/S Ratio
Price to sales ratio
15.12
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.09
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.66
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How AVANTEL.NS Stacks Against Its Sector Peers
| Metric | AVANTEL.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 198.84 | 34.30 | Worse (Expensive) |
| ROE | 6.46% | 1153.00% | Weak |
| Net Margin | 7.85% | -95649.00% (disorted) | Weak |
| Debt/Equity | 0.09 | 7.91 | Strong (Low Leverage) |
| Current Ratio | 3.66 | 5.85 | Strong Liquidity |
| ROA | 4.20% | -309682.00% (disorted) | Weak |
AVANTEL.NS outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Avantel Ltd's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Growth, Innovation, High Beta
EPS CAGR
N/A
Industry Style: Growth, Innovation, High Beta
FCF CAGR
N/A
Industry Style: Growth, Innovation, High Beta