BSE: 543230
Market Cap: ₹2.1k Cr.
Company Profile
Advait Infratech(Bse small cap) engages in the business of manufacturing and supplying power transmission, substation, and telecommunication infrastructure products. The company was started in 2009. In 2023 they have expanded their business through their joint ventures and partnerships.
Business Model
The Bse small cap company operates on a manufacturing and supply business model where it produces products like Optical Fibre Ground Wire, OFC cables, Aluminium Clad Steel Wire, Joint boxes and more such related products.
Apart from that, Advait Infratech also provides services like Live Line OPGW Installation, trading end to end, Liaising etc. AGPL is a subsidiary of Advait Infratech which is into providing carbon neutrality, its consultancy and developing its tools. The company has also entered into a supply of electrolytes and fuel cells in 2023.
Joint Venture
Advait Infratechhave has also done a Joint Venture with the Council of Scientific and Industrial Research (CSIR) to develop an Indigenous and cost-effective technology of ERS suitable for transmission lines of voltages.
Management Analysis
Mr. Shalin Sheth is the promoter and managing director of the company. Mr. Shalin is a Mechanical Engineer who also holds an MBA degree from IIM Ahmedabad. He has nearly 10 years of experience in the power infrastructure sector, having held managerial positions at companies such as Adani Power and Kalpataru Power.
Mrs Rejal Sheth, the spouse of Mr Shalin is the CFO and Whole Time Director of Advait Infratech. Before joining the Bse small-cap company, she was a Center Coordinator at Kidzee Preschool.
How Much Money Does the Advait’s Managing Director Earns?
The MD, Mr Shalin Sheth is taking 7.4 times the average salary of the employee while the CFO, Rejal is taking 4.5 times the average salary of the employee. Considering that Mr Sheth is the founder, this figure is good.
Financial Analysis
Advait Infratech financials are seen improving from almost every angle. There is a steep uptrend in the operating profit and net profit margins. The company is also generating cash more than in the previous 3 years. There is also a significant increase in the sales growth of Advait.
The company’s financial health is solid due to lower reliance on outside borrowing. As of March 31, 2023, the company’s debt levels were low.
respectively. The company’s ability to handle debt is also strong, with an interest coverage ratio of 4.7 times. The company’s financial risk profile has gotten better with increased reserves which decreased the debt reliability.
The Cash Conversation Cycle
Advait Infratech has a negative cash conversion cycle, which is rare in the industry. This negative number indicates that the company is receiving money from its debtors at a faster rate and taking longer to pay its creditors.
With a decreasing number of days for accounts receivable, the company is generating cash from credit sales even more quickly, strengthening its balance sheet.
Order Book
In the recent mid-July, Advait Infratech, the Bse small cap company received a huge order from Power Grid Corporation of India (PGCIL). This order was valued at ₹35.1 Cr for live line installation of OPGW cable in the Ladakh region.
As of the investor meeting held in June, the company showed an order book value of ₹37.7 Cr which is now totaled at ₹72.8 Crs.
Market Outlook for Advait Infratech Ltd
The OPGW market in India is expected to grow due to increasing power lines and the need for power line safety. The global OPGW market was valued at $642 million in 2022 and is expected to reach $870.9 million by 2029.
The demand for OPGW cables is increasing due to the need for high-speed internet services. The market is estimated to reach $876.8 million by the end of the forecast period in 2031, with a projected CAGR of 4.8%. However this industry faces intense competition due to low entry barriers and relies heavily on competitive tenders from the government and other entities.
Disclaimer
The information presented here is for educational purposes only and should not be considered financial advice. Please do your own research before making any investment decisions.