One of the micro-cap telecom stocks engaged in manufacturing in-building coverage solutions and mobile network accessories for mobile service providers and operators. The stock has jumped by 9.63 percent after receiving a purchase order from M/s Amaravati Digital Networks LLP.
Stock movement:
In Friday’s trading session, Frog Cellsat Limited‘s share jumped by 9.63 percent from the previous close of Rs. 325.50. The stock opened at Rs. 326.05 and is currently trading at Rs. 356.85, with a high of Rs. 363.30 and a low of Rs. 326.05. The market capitalization now stands at approximately Rs. 536.54 crores.
What Happened:
Frog Cellsat Limited has secured its fourth major airport contract from M/s Amaravati Digital Networks LLP to deploy its OneDAS system at Guwahati Airport’s new terminal. The system will provide 4G and 5G mobile coverage across 8 frequency bands in MIMO 2×2 configuration, ensuring ultra-fast internet speeds and high-quality voice connectivity.
Orderbook:
The company maintains a robust order book of Rs. 110 crore at the end of Q2 FY25, with significant billings anticipated in Q3. Recent key wins include a Rs. 31 crore order from Metrotel Telworks for Mumbai International Airport and a Rs. 16 crore contract for Navi Mumbai International Airport.
With current capacity utilization at 50-60% and new SMT line equipment expected by Q4 FY25, the company is well-positioned to generate additional revenue of Rs. 150-200 crore.
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Products Category:
The company showcased significant product innovations, including Active DAS for 5G, Smart mini boosters for IoT, VHF repeaters for railways, and noise field solutions. Additionally, the company has conducted trials for its interference mitigation system (IMF), with commercial discussions in progress.
Challenges and margin guidance:
The company faces margin pressures due to product mix variations and rising raw material costs. However, management remains optimistic, targeting EBITDA margins of 12-13% in upcoming quarters, expecting improvements through revenue growth and stabilization of fixed costs.
Recent quarter results and ratios:
Frog Cellsat Limited’s revenue has increased from Rs. 35.15 crore in Q2 FY24 to Rs. 43.81 crore in Q2 FY25, which has grown by 224.64 percent YOY. The net profit of Frog Cellsat Limited has also grown by 60.08 percent, from Rs. 2.58 crore in Q2 FY24 to Rs. 4.13 crore in Q2 FY25.
Frog Cellsat Limited’s revenue and net profit have grown at a CAGR of 12.68 percent and 51.57 percent, respectively, over the last five years. In terms of return ratios, the company’s ROCE and ROE should be 14.3 percent and 11 percent, respectively. Frog Cellsat Limited is a debt-free company, and its EPS is to be Rs. 10.1.
Company Overview
Frog Cellsat Limited was established in 2004 and is headquartered in Noida. The company is a leading Indian manufacturer of RF equipment for wireless networks. The ISO 9001:2015-certified company specializes in mobile coverage enhancement solutions, including in-building coverage planning and RAN installation services.
Written By – Nikhil Naik
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