Avalon Technologies Limited (AVALON) AI Stock Analysis

• Market Cap: ₹57.24B
• Dividend Yield: N/A
• Average Volume (3M): 49.63K
• Price to Earnings (P/E): 65.0
• Beta (1Y): 1.10
• Revenue Growth: 46.80%
• EPS Growth: 201.41%
• Country: IN
• Employees: 830
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 3.73
• Shares Outstanding: 66,758,970
• 10 Day Avg. Volume: 68,026
• 30 Day Avg. Volume: 49,625
• PEG Ratio: 0.65
• Price to Book (P/B): 8.42
• Price to Sales (P/S): 4.69
• P/FCF Ratio: -243.91
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹800.00
• Price Target Upside: -10.35% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: ₹896.00 ▲(0.40% Upside)

Avalon Technologies exhibits strong financial performance with revenue growth and profitability improvements. However, high valuation metrics and cash flow challenges weigh on the overall score. Technical indicators show mixed signals, reflecting uncertainty in market momentum.

Positive Factors

Sustained Revenue Growth

A 26.6% revenue rise indicates expanding demand for Avalon’s EMS services and market share gains. Durable top-line growth supports scale benefits, better fixed-cost absorption and reinvestment capacity, strengthening long-term competitiveness across customer programs.

Strong Gross Margins

A 35.8% gross margin reflects operational efficiency and value-added capabilities (testing, integration). Sustained high gross margins afford pricing flexibility, resilience to input-cost swings and the ability to fund process improvements and technical investments over time.

Improved Capital Structure

A healthier equity base and reduced leverage lower refinancing and solvency risk, giving Avalon greater financial flexibility to invest in capacity, absorb cyclical downturns and pursue strategic customer programs without immediate reliance on external funding.

Negative Factors

Negative Free Cash Flow

Persistent negative free cash flow means operating profits are not covering capex and working capital needs, limiting internal funding for growth or debt paydown. Unless cash generation improves, the company may face constrained liquidity and fewer options for strategic investments.

Relatively High Liabilities

Elevated liabilities reduce financial flexibility and can increase interest and covenant exposure. Over the medium term this can limit Avalon’s ability to pursue capital spending or absorb revenue volatility, making sustained liability reduction important for stability.

Order-Driven Revenue & Disclosure Gaps

A project/order-driven EMS model often produces lumpy, customer-dependent revenue streams. The lack of disclosed customer concentration makes it hard to assess durability; heavy reliance on a few OEM programs could create revenue volatility and negotiation leverage risks.

Avalon Technologies Limited Business Overview & Revenue Model

Company Description

Avalon Technologies Limited provides integrated electronic manufacturing services in India, the United States, and internationally. Its capabilities include printed circuit board design and assembly, cable assembly and wire harnesses, sheet metal fabrication and machining, magnetics, injection molded plastics, volume production, system integration, and box build of electronic systems, as well as lifecycle solutions. The company specializes in manufacturing and providing design support for pivotal integrated assemblies, sub-assemblies, and components and enclosures for various industry verticals. It serves clean energy, mobility, communication, industrial, medical, and other sectors. The company was formerly known as Avalon Technologies Private Limited. Avalon Technologies Limited was formed in 1995 and is based in Chennai, India.

How the Company Makes Money

Avalon Technologies generates revenue primarily through its engineering services and product manufacturing capabilities. The company operates on a business-to-business (B2B) model, providing tailored solutions to clients in sectors such as aerospace and automotive. Key revenue streams include project-based contracts for engineering services, ongoing maintenance and support services, and the sale of customized technology products. Additionally, Avalon fosters partnerships with major corporations and government entities, which can lead to long-term contracts and repeat business, further contributing to its financial stability. The company's ability to innovate and adapt to changing market demands also plays a significant role in sustaining its earnings.

Avalon Technologies Limited Financial Statement Overview

Summary

Avalon Technologies shows strong revenue growth and improving profitability, with efficient operations and a healthy equity base. However, cash flow management challenges and high liabilities are areas needing improvement.

Income Statement

Avalon Technologies has demonstrated consistent revenue growth with a notable increase of 26.6% in the most recent year. The company's gross profit margin stands at a robust 35.8%, while the net profit margin improved to 5.8%, indicating enhanced profitability. EBIT and EBITDA margins have shown positive trends, reflecting efficient cost management. Overall, the income statement highlights strong growth and improving profitability.

Balance Sheet

The balance sheet shows a healthy equity position with a significant increase in stockholders' equity. The debt-to-equity ratio has improved, indicating a more balanced capital structure. However, liabilities remain relatively high, and the equity ratio of 58.8% suggests moderate leverage. Overall, the financial stability is improving, but further reduction in liabilities would strengthen the balance sheet.

Cash Flow

Operating cash flow has been positive, but free cash flow remains negative, indicating challenges in covering capital expenditures. The operating cash flow to net income ratio suggests operational cash generation is not fully translating into free cash flow. Improvements in cash flow management are needed to enhance liquidity and financial flexibility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	12.22B	10.98B	8.67B	9.45B	8.39B	6.90B
Gross Profit	4.41B	3.93B	871.00M	1.37B	2.85B	2.34B
EBITDA	1.55B	1.15B	767.57M	1.13B	1.26B	715.70M
Net Income	799.60M	634.39M	279.85M	525.03M	632.08M	230.82M
Balance Sheet
Total Assets	0.00	10.40B	9.31B	11.89B	5.88B	5.12B
Cash, Cash Equivalents and Short-Term Investments	1.35B	1.35B	1.82B	4.22B	101.39M	335.25M
Total Debt	0.00	1.80B	2.09B	3.42B	3.18B	3.16B
Total Liabilities	-6.12B	4.28B	3.83B	6.52B	5.01B	4.84B
Stockholders Equity	6.12B	6.12B	5.47B	5.37B	887.84M	599.45M
Cash Flow
Free Cash Flow	0.00	-211.23M	-182.31M	-687.20M	-20.83M	-136.98M
Operating Cash Flow	0.00	250.56M	172.89M	-414.24M	138.59M	55.16M
Investing Cash Flow	0.00	537.98M	-1.46B	-254.08M	-165.69M	-262.62M
Financing Cash Flow	0.00	-522.84M	-2.51B	4.52B	-208.36M	279.64M

Avalon Technologies Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 892.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AVALON, the sentiment is Neutral. The current price of 892.4 is above the 20-day moving average (MA) of 871.38, above the 50-day MA of 888.85, and below the 200-day MA of 919.19, indicating a bearish trend. The MACD of -25.08 indicates Positive momentum. The RSI at 48.23 is Neutral, neither overbought nor oversold. The STOCH value of 31.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:AVALON.

Avalon Technologies Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CYIENTDLM	67 Neutral	₹29.83B	36.41	―	―	9.86%	21.38%
SYRMA	66 Neutral	₹146.75B	49.93	―	0.20%	1.30%	111.88%
MASTEK	65 Neutral	₹63.64B	16.77	―	1.62%	11.91%	-1.02%
NITIRAJ	63 Neutral	₹1.82B	23.49	―	0.78%	-3.39%	-2.10%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AVALON	59 Neutral	₹57.24B	65.01	―	―	46.80%	201.41%
CENTUM	55 Neutral	₹34.20B	294.63	―	0.25%	10.29%	―

Avalon Technologies Limited Corporate Events

Avalon Technologies Confirms Full Demat Status and SEBI Compliance for December Quarter

Avalon Technologies Limited reported that its registrar and share transfer agent, MUFG Intime India Private Limited, has certified compliance with Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended 31 December 2025, confirming no requests for dematerialisation or rematerialisation were received during the period. The company highlighted that 100% of its equity shares remain in dematerialised form and that all securities processed for dematerialisation have been duly verified, cancelled in physical form, and correctly reflected in the depository records, underscoring strong adherence to regulatory requirements and a clean, fully electronic shareholding base for investors.

Avalon Technologies Releases Q2 FY26 Financial Results

Avalon Technologies Limited has announced its unaudited standalone and consolidated financial results for the quarter and half-year ending September 30, 2025. The company has shared an investor presentation detailing these financial results, which were approved during a board meeting on November 5, 2025. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction for the upcoming fiscal period.

Avalon Technologies Reports Strong Q2 FY26 Financial Results

Avalon Technologies Limited reported a robust financial performance for the second quarter and half-year ending September 30, 2025, with a notable increase in revenue and profitability. The company achieved a 39.1% year-on-year revenue growth in Q2 FY26, driven by strong performances in both Indian and US markets. The order book saw a 25.4% increase, and the company secured an AS9100D aerospace quality certification. Avalon also received recognition as a supplier of the year by a leading railway OEM, highlighting its operational excellence and cost reduction initiatives.