Shares of a company engaged in manufacturing communication equipment, primarily for power utilities/other utilities surged nearly 17.4 percent on BSE to Rs. 640 on Friday, after receiving an order worth nearly Rs. 41.35 crores from a Tata Group company.
With a market cap of Rs. 453 crores, at 10:05 a.m., the shares of Valiant Communications Limited were trading in the green at Rs. 590, up by around 8.2 percent, as compared to its previous closing price of Rs. 545.15.
What’s the News
According to the recent filings on BSE, Valiant Communications Limited announced receiving the single largest order in its corporate history from Tejas Networks Limited, a Tata Group company.
The gross value of the purchase order is Rs. 41.35 crores, and the end-user for the awarded project is the Gujarat Energy Transmission Corporation (GETCO).
The order involves the supply of communication, protection and synchronisation equipment as per the technical requirements, and is to be delivered by 31st December 2025.
About the Awarding Entity
Founded in 2000, Tejas Networks Limited, a part of the Tata Group, is India’s leading indigenous developer and manufacturer of telecom and networking equipment, specialising in both wireless and wireline solutions.
The company designs, develops, and manufactures high-performance, future-ready products for building high-speed communication networks that carry voice, data and video traffic from fixed-line, mobile and broadband networks.
Tejas Networks serves a diverse range of customers, including telecom service providers, internet service providers, web-scale internet companies, utility companies, defence companies and government entities.
The company listed its equity shares at BSE and NSE on 27th June 2017.
Previous Order
23rd December 2024: Valiant Communications secured an order worth Rs. 8.12 crores from the Transmission Corporation of Andhra Pradesh (APTRANSCO). This contract involved the supply and commissioning of communication and protection solutions, with the project scheduled for completion by 31st July 2025.
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Financials
Valiant Communications reported a significant growth in revenue from operations, experiencing a year-on-year increase of nearly 14.6 percent, rising from Rs. 11.1 crores in Q2 FY24 to Rs. 12.72 crores in Q2 FY25.
Similarly, during the same period, the company’s net profit increased from Rs. 1.43 crores to Rs. 2.8 crores, representing an impressive growth of around 96 percent YoY.
Key Financial Ratios
In terms of key financial metrics, Valiant Communications has a Return on Equity (RoE) of 14.4 percent and a return on capital employed (RoCE) of 18.9 percent. Additionally, the company’s debt-to-equity ratio stands at 0.04.
Stock Performance
The stock has delivered positive returns of nearly 92.3 percent in one year, while around 13 percent of negative returns in the last six months. However, the shares of Valiant Communications have given positive returns of about 9 percent in the last one month.
About the Company
Valiant Communications Limited (VCL) is a certified manufacturer and exporter of a wide range of communication, transmission, protection, synchronisation, NAS data storage equipment and cyber security products, with installations in more than 110 countries.
VCL solutions are offered for all types of utility applications such as power utilities, oil & gas, railways, metro rail communications, airport communications, mobile backhaul, corporate and defence sectors etc.
Written by Shivani Singh
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