22 Monopoly Stocks in India for investment!📊
1- IRCTC (100% in the ticketing business)
2- HAL (100% in defense manufacturing)
3- CDSL (59% in depository business)
4- Coal India (82% in coal production)
5- Pidilite (70% share in adhesive)
6- Nestle (96.5% share in cerelac industry)
7- MCX (92% of India’s commodities exchange sector)
8- Syngene (50% of the contract research and manufacturing services (CRAMS) market in India)
9- Praj Industries (60% in ethanol plant installation industry)
10- Asahi India Glass (77% of the automotive glass market and 50% of the architectural glass market in India)
11- Hindustan Zinc (78% in zinc industry)
12- ITC (77% in cigarettes)
13- CONCOR (68.52% in cargo carrier)
14- BHEL (67% in the power equipment sector)
15- DFL (DreamFolks is India's largest airport service aggregator)
16- APL Apollo (50% share in pre-galvanised and structural tube industry)
17- Borosil Renewables (India's only solar glass maker for over a decade)
18- BKT (6% of the global off-highway tire market and 30% of the Indian market)
19- IEX (95% of short-term electricity contracts in India)
20- CAMS (70% within the mutual fund industry)
21- Marico (73% in oil products)
22- NOCIL (it is the largest rubber chemical manufacturing company with 40% market share in India)
Which Stock You Are Holding ??
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Avantel Ltd.
Market Cap: ₹ 1,881 Cr.
5Yrs Sales CAGR : 24%
5Yrs PAT CAGR : 36%
ABOUT THE COMPANY
The company has formed various alliances in order to provide better solutions in communications and computing. It has partnered with Space Applications Centre, ISRO, Department of Space, Government of India, L 3 Communications - Narda, USA and Vedang Radio Technology.
Avantel is actively involved in the design and development of products based on High Power Broadband Wireless, Satellite Communication and Broadband access technologies. The design, development and integration of wireless and access products are carried out using standard and proprietary software tools.
INVESTMENT THESIS
•Strong Research and Development
•Established market position in telecom and electronic equipment industry
•Established track record of operations in SATCOM and electronics equipment business
•Reputed clientele of strategic importance and positive industry outlook
•Greenfield expansion
Strong Research and Development
The company drives its core business strength from its in-house R&D capabilities. Company’s research and development is recognised by the department of scientific and industrial research(DISR), ministry of science and technology, GOI. The Company could offer indigenous, customized strategic solutions to Indian defence services including Indian Navy, Indian Air force, Indian Coast Guard, ISRO and BARC. Company spends around 8 to 9 percent of its turnover on research and development expenditure.
Established market position in telecom and electronic equipment industry
Avantel Ltd(AL) has been operating in niche defense supplies and provides customized wireless and satellite communications (SATCOM) solutions and products. The company developed SATCOM products for data, voice & multimedia applications using INSAT 3C, GSAT-6 and GSAT-7 and the company has a long association with ISRO in development of terminal and SATCOM applications. AL is also involved in development and implementation of network systems for ships, submarines, surface vehicles and aircrafts.
Established track record of operations in SATCOM and electronics equipment business
Avantel was incorporated in 1992 by Mr. Dr. Abburi Vidyasagar. The management has three decades of experience in building wireless & Satellite Communication systems, RF systems design, Embedded systems & Digital signal processing, Network management & software development and Engineering & IT services. The company provides customized solutions through process oriented design, develops and manufactures RF subsystems, RADAR subsystems, Software dependent on radios and satellite communication systems. Established track record of three decades in electronic and telecom equipment business has enabled AL to offer a unique combination of embedded systems and related software used in defense and telecom sectors.
Reputed clientele of strategic importance and positive industry outlook
The company mainly operates in the Aerospace & Defence sector and holds Defence Industrial Licenses issued by the government and its customers mainly come from the strategic sector such as space, defence, transport and telecommunications. The company maintains healthy and long term relationships of over two decades with a reputed clientele that includes Indian Army, Indian Railways, Indian Air force, Indian Navy, ISRO, DRDO, Goa Shipyard Limited, The Boeing Company, Larsen & Toubro Limited (L&T), etc.
Greenfield expansion
Avantel has bought four acres of land in Electronic City in Hyderabad, which is about 10 minutes from the airport at a very reasonable price of one crore per acre approximately. Avantel has plans to build a facility for radar, small satellites in that particular area, and this facility should be operational by November or December 2023.
Industry Overview
In recent times, the Defence budget has been sensitive to the need for establishing a technological framework to advance growth of a vibrant indigenous defence manufacturing infrastructure. India's Defence budget for FY 22-23 is about Rs 4 lakh crore after excluding the component of the Defence pensions and is primarily focused towards the upkeep and modernization of Armed Forces. The capital outlay, which focuses towards the modernization of Armed Forces has been increased by 12.8% with an allocation of Rs 1.52 lakh crore.
The new DAP (Defence Acquisition Procedure) 2020 has given a stronger push to indigenization. The provisions of DAP 2020 will help to expedite the current procurement cases and open new avenues for business. The indigenisation list released recently by the government could further open up many opportunities for diversification / introduction of new product lines. Besides, in the medical segment, there is a huge opportunity for indigenous and cost effective medical devices.
Business Overview
Avantel is actively involved in the design and development of products based on High Power Broadband Wireless, Satellite Communication and Broadband access technologies. The design, development and integration of wireless and access products are carried out using standard and proprietary software tools.
Avantel has yet again recorded the highest turnover since inception for the F.Y. 2022-23 and crossed the 150 Crores milestone. The Company has been witnessing an impressive growth year on year and certain high value projects have been under execution during F.Y.2022-23. Company has successfully completed all the deliveries of the 1 KW HF project of the Indian Navy and the installations of HF Radio sets are currently under progress. The RTIS project with Indian Railways is currently under execution and shall be completed by October 2023. The company has also designed, developed and supplied 5 Kw HF Transmitter systems which will be an import substitute for Indian Navy requirements. Company has successfully completed development of the SATCOM System for Multi Utility Helicopters of Lockheed Martin being supplied to the Indian Navy. Keeping in mind the future business prospects, this year Company has also embarked on development of HF Software Defined Radios (SDRs) with 2G/3G ALE & ECCM Capability and different variants of MSS for
submarines. Imeds Global Private Limited, subsidiary of Avantel Limited offering innovative medical solutions has commenced its operations from AMTZ, Vizag and the license for manufacture of Surgical Staplers and Removers has been granted. Imeds has also embarked on development of a non-invasive ventilator which is at an advanced stage and developing a patient monitor & syringe pump through Technology Transfer.
SEGMENT OVERVIEW
Aerospace and Defense
Avantel's customer base traditionally has been the Aerospace and Defence sector and the company is well known for its innovative & indigenous solutions. Avantel has a unique business model wherein it offers an exclusive product mix consisting of niche and state of the art products catering to the emerging and specialized needs of the Indian Defence Forces & allied establishments.
Software Defined Radios
Avantel has designed and developed fully indigenous HF Software Defined Radio (SDR) covering Frequency Range of 1.5 to 30 MHz in compliance with Software Communication Architecture (SCA).
The HF SDR implements specified transceiver API at the top level and the hardware is controlled/ accessed through intervening SCA core framework. The ORB (Object Request Broker) layers are running on top of a POSIX compliant real time operating system (Petalinux).
Avantel has the capability to offer multi frequency SDR solutions for tactical and airborne applications as per customer specific requirements.
Satellite Communications
Avantel is at the forefront of innovation in satellite communications. Avantel developed customized solutions for GSAT based Mobile Satellite Services with advanced microwave, digital wireless communications and signal processing products for military and commercial markets.
SATCOM Radios operate in ‘S’ and ‘UHF’ band and provide Full-duplex Voice/Data Communications between Ships, between Aircraft, Aircraft - Ship, Ship - Base, Base - Ship etc. The company are presently working on solutions in X-Band / Ku-Band as well.
HF Communications
HF solutions are a true example of “Make in India” initiative meeting the norms of indigenous content as per “IDDM” category of DAP 2020.
The company currently offers 1 KW and 5 KW solutions for Static and Ship borne Applications. The HF Radio operates in wideband (24 KHz) and consists of the latest state-of-art technology that includes FPGA, DSP, Direct Digital frequency synthesis, Automatic link establishment using 3G ALE (STANAG4538), 2G ALE (FED-STD 1045), Frequency hopping and customized waveform loading capability.
The HF transceivers system covers the 1.6 to 30 MHz frequency range in 1 Hz steps. Communication is possible in both simplex and half-duplex in Single Sideband (SSB), Amplitude Modulation (AM), and Digital modulation. These HF Transceivers provide the interface for high speed data and digital voice encryption using external crypto devices.
Radar Systems
Radar systems portfolio comprises Radar subsystems viz. T/R modules, Exciter, DTCSG, MTCSG, Distribution unit etc in the frequency ranges of HF, UHF, L, S, C and X bands also offer complete Radar solutions as per customer specifications.
•Timing and control generation
•Power output upto 7.5KW
•Solid state and fast switching.
•Active array based
•Local and remote operation
Network Management Systems & Application Software
Avantel offers a wide range of services in the area of application development. Avantel can identify the need, design and build the solutions from scratch to suit the specific requirement of the customer. Avantel follows well defined software engineering processes and established methodologies. Avantel with its past domain and technology expertise will bring in innovative ideas and offer solutions to improve the existing functionality, address the current pain areas and technology limitations. The solution offered will be scalable to meet future business growth and make it accessible to external stakeholders. Software development process is compiled as per AS 9115 standard. All airborne software undergoes an airworthiness certification process from CEMILAC.
Embedded Systems & Digital Signal Processing
Avantel undertakes full stack solutions for design, development, verification, certification of complex and diverse embedded systems for Communications and Radar applications. Avantel has the latest state of the art tools for undertaking the embedded systems development.
•SCA development Environment
•Development environment for 8/16/32 bit microcontrollers, AD/TI DSP platforms, FPGAs
•Keil, Dynamic C, Silicon Lab, MP Lab, Code Composer Studio, VisualDSP++ for DSP Processors, Xilink Simulators (MATLAB)
SOLUTIONS
Mobile Satellite Services (MSS) Network
Avantel has established the MSS network for the Indian Navy for providing reliable, secured, real-time, long range (1000 nautical miles from shore) voice and data communications among Ships, Submarines, Aircraft and Helios. The network comprises indigenously designed & developed Avantel’s Earth station electronics and platform equipment.
The network has S X C and C X S links for facilitating uplink and downlink communications. Each of the user terminals specially the aircraft and submarine versions are platform specific and designed as per the specified Mil standards. The NMS and Application software has been developed in-house by Avantel as per applicable standards. Avantel is the first company to roll out indigenous Airborne Satcom solutions duly approved by CEMILAC and form part of this network.
UHF SATCOM Network
The IN UHF network comprises SATCOM plus LoS terminals for Ship borne applications and Satcom only Airborne terminals and is extensively used for Beyond Line of Sight (BLoS) operations in high Seas.
The hub electronics and user terminals have been indigenously designed, developed and deployed by Avantel on various IN ships and Aircraft.
These terminals facilitate Full-duplex voice /data communication and work in Demand Assigned Multiple Access (DAMA)/Permanent Assigned Multiple Access (PAMA) modes.
Wind Profiler Radars
Avantel developed Wind Profile Radars and deployed at SDLC-SHAR, ISRO (49 MHz) and NARL (30 MHz). These Wind Profiler Radars provide three dimensional, high resolution wind data from 450 meters to 21 KM altitudes and support wind velocity of 1m/s to 30m/s.
Wind profilers provide three-dimensional atmospheric wind data on a continuous basis with good spatial resolution. This continuous high-resolution wind data is very useful for studying the development of wind shears in near real time and is extremely crucial before successful satellite launch.
Real-time Information System for Indian Railways
Avantel has developed a unique, real time and cost effective solution for position determination and location transmission of the rolling stock for Indian railways. The Real-time Train Information System (RTIS) helps the railway operator to run the rolling stock control applications automatically. The solution facilitates real time tracking using GPS + GIS + Zigbee + MSS + 4G technologies.
The system also enables the train information to be accessed through web or mobile service providers. The solution automatically computes the arrival and departure of passenger trains and updates the same through the passenger information system or to an enquiry run by the railway operator.
Sahayak
MSS solution has been deployed in the Sahayak project developed by NSTL & ADE for Indian Navy to facilitate the transmission of positional information through the satellite for quick recovery of Sahayak containers in high seas.
The “Sahayak” air droppable containers are aimed at enhancement of operational logistics of the Indian Navy and facilitate quick supply of essential spares and stores to Ships deployed at more than 2000 Kms in high seas. This solution will reduce the requirement of ships coming alongside frequently for replenishments and enhance deployment duration.
ERM-SAT
ERMSAT has been designed for specific needs of strategic customers for Environment Radiation Monitoring. The standalone solar powered Environmental Radiation Monitor can be installed at various remote locations and the radiation data is collected through sensors is transmitted to a centralized location through satellite communication.
The ERM-SAT systems are compatible with other mode of communications I.e. GSM, LAN, ZigBee etc. and these are rugged, compact, energy efficient and incorporate secure (encryption based) data communication.
Ocean Gauges & Tide Gauge Applications
Avantel has developed and supplied MSS and UHF Transmitters to INCOIS and NIoT for integration with the Wave rider/ Drifting Buoys and Tide Gauge equipment.
The company equipment forms the critical part of the Tsunami early warning systems in India and are used to transfer the sea level data to the control centre 24 X 7 to detect unusual sea conditions and provide early warning for Tsunami occurrence to the administrative authorities and people as part of disaster preparedness and management initiatives.
Infrastructure
Avantel,a technology driven company offers wireless, Satcom products, software solutions and services that enrich people by enabling universal access to knowledge.
Avantel operates from two locations; a state of the art facility and Gold rated Green building certified by IGBC, CII housing the production and R & D facilities at APIIC Industrial Park at Gambheeram Village, Anandapuram Mandal, spread across an area of approximately 55000 Sq Feet. The corporate office is located at Hyderabad and currently operates from leased premises.
The R & D facility is recognized by DSIR, Govt of India as “Center of Excellence” for undertaking research & developmental works in contemporary technologies in the areas of RF design, embedded systems, signal processing and software.
Visakhapatnam facility houses various state of the art facilities, equipment and tools required for undertaking R & D and Manufacturing activities.
Marine Communications
Avantel enabled the Indian Navy and Indian Coast Guard to be connected with their operational forces deployed at long ranges (ranging from 1000 to 3000 Kms) in their Area of Interest (AoI) providing highly secured and reliable connectivity round the clock. The marine communication portfolio of Avantel includes
Custom Innovative Solutions
Avantel is in the forefront of innovation and offers various unique solutions to meet the special requirements of its customers. Instead of offering similar products as that of its competitors, Avantel adopts a Blue Ocean Strategy to carefully position itself where there is minimal or no competition. This strategy helps Avantel in positioning itself ahead of its competitors and posing very high risk for late entrants in view of developmental cycle times and low volumes of business. Avantel R & D is recognized by DSIR, GoI as Centre of Excellence for undertaking R & D work in defence technologies. Avantel R & D facilities are state of the art and has a highly skilled & experienced talent pool capable of undertaking focused / advanced R & D activities in new technologies. Avantel follows a two pronged strategy in development of its products viz. customer driven (customer RFI / RFP) and new product development initiated by Avantel. Various innovative solutions currently deployed are as under:
•MSS Network
•UHF SATCOM Network
•Wind Profiler Radars
•Real-time Information System for Indian Railways
•SAHAYAK Air Droppable Containers
ERM-SAT
•Ocean Gauges & Tide Gauge Applications
•Visual Databases for Aircraft Simulators
Opportunities and Threats
Opportunities
Avantel is at the cusp of turning into a reckonable OEM in India is the strategic space with its portfolio of products.The Company's strength is indigenous development of various technologies in-house. Currently, most of the projects from MoD are being progressed under Buy (IDDM) category and Company has an edge in the competitive bidding process due to its fully indigenous solutions.The new DAP (Defence Acquisition Procedure) 2020 focuses on indigenization to enhance self-reliance and the project under Make route will be very beneficial in future for the Company. In the Space domain,there is a great push from the Govt of India by approving the Indian Space Policy 2023 (Space Policy has been unveiled for the first time in the country) and creation of In Space, an organisation to look after the interests of the private sector in the space domain. Company shall utilize the emerging opportunities to enhance its Space Technology portfolio further. In the medical segment,in view of the emerging demand for indigenous medical devices, iMeds is poised to introduce various indigenous products in the Surgical and Respiratory domain in the coming FY to enhance its product mix.
Threats
The business projections for the next two to three years are very optimistic and the company is expected to consolidate its top line and maintain profitability. Therefore,no major threats are envisaged as of now for the company's business performance in the next FY.
FUTURE OUTLOOK
The Union Budget for F.Y.2024 envisages a total outlay of US$ 550 billion (Rs.45,03,097 Crores). The Ministry of Defence has been allocated a total Budget of US$ 72 billion (Rs.5,93,537.64 Crores), which is 13.18 % of the total budget. The total Defence Budget represents an enhancement of US$ 8.35 billion (Rs. 68,371.49 crores), which is 13% more than the Budget for 2022-23.
In order to be able to cater to the sustenance of weapon systems, platforms including ships/aircraft and their logistics, boost fleet serviceability, etc. the non-salary revenue/operational allocation has been increased from US$ 7.63 billion (Rs.62,431 Crores) in Budget Estimates 2022-23 to US$ 11 billion (Rs.90,000 crores) in BE 2023-24.The Capital Allocation pertaining to modernisation and infrastructure development of the Defence Services has been increased to US$ 19.88 billion (Rs.1,62,600 crores) representing a rise of 6.7% over F.Y.2023.
40 #stocks that are being added to MSCI Global Small Cap. This clearly indicates the liking, strength and future prospects of such fast growing smaller companies & more and more FII investments will keep coming in near future.
#stockstowatch
1. Avalon Tech
2. Dreamfolks Services
3. Genus Power
4. HBL Power Systems
5. Jupiter Wagons
6. Titagarh Rail
7. Zen Technologies.
8. ACC Ltd
9. Aether Industries
10. Ami Organics
11. Anand Rathi Wealth
12. Chennai Petroleum
13. Five-Star Business
14. GE T&D
15. Glenmark Life Sciences
16. Gravita India
17. Hindware Home
18. ICRA
19. Kalyan Jewellers
20. Kirloskar Brothers
21. Kirloskar Pneumatic
22. Marksans Pharma
23. MIDANI
24. MRS Bectors Food
25. Nava
26. Neuland Lab
27. Newegen Software
28. Nexus Select Trust
29. Patel Engineering
30. PTC Industries
31. Schneider Electric Infra
32. Shivalik Bimetal Controls
33. Star Health & Allied
34. Sula Vineyards
35. Tamilnad Mercantile Bank
36. TD Power Systems
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38. Ujjivan Financials
39. Vesuvius India
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77 Small Cap Potential Stocks Independence Day
Debt Free || Good Returns || Profitable Companies
Filters used -
Market Capitalization > 1000 AND < 5000 Cr
Debt to equity < 0.25
Sales growth 5Years > 5 %
Profit after tax > 50 Cr
Return on capital employed > 20%
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जब जब महिलाओं के साथ हर दिन होने वाले अत्याचार की कहानियां जंग के मैदानों में किसी खोखली जीत का उत्सव बनने लगती हैं, इतिहास हाज़िरी लगाता है. और, आप अपनी चुप्पी में एक बार फिर सच से अपना मुंह छिपाते हैं.
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