Avalon Technologies Limited (AVALON) AI Stock Analysis

• Market Cap: ₹74.69B
• Dividend Yield: N/A
• Average Volume (3M): 49.63K
• Price to Earnings (P/E): 92.6
• Beta (1Y): 0.97
• Revenue Growth: 46.95%
• EPS Growth: 326.05%
• Country: IN
• Employees: 830
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 2.10
• Shares Outstanding: 66,713,940
• 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: ₹833.33
• Price Target Upside: -26.63% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3

• Rating: 61 Neutral
• Price Target: ₹1,322.00 ▲(16.40% Upside)

Avalon Technologies' overall stock score is driven by strong financial performance and bullish technical indicators. However, the high P/E ratio suggests potential overvaluation, which is a significant risk factor. The absence of dividend yield further impacts the valuation negatively.

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. However, challenges in cash flow management and high liabilities indicate areas for improvement. The overall financial stability is on a positive trajectory.

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: Positive
• Last Price: 1135.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AVALON, the sentiment is Positive. The current price of 1135.75 is below the 20-day moving average (MA) of 1139.72, above the 50-day MA of 1001.84, and above the 200-day MA of 851.62, indicating a neutral trend. The MACD of 43.86 indicates Positive momentum. The RSI at 54.91 is Neutral, neither overbought nor oversold. The STOCH value of 10.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:AVALON.

Avalon Technologies Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SYRMA	―	₹150.18B	69.88	―	0.20%	-3.83%	103.32%
MASTEK	―	₹63.15B	17.63	―	1.59%	11.91%	-1.02%
CYIENTDLM	―	₹36.73B	44.97	―	―	9.86%	21.38%
NITIRAJ	―	₹1.97B	33.21	―	0.76%	-10.98%	-35.31%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AVALON	―	₹74.69B	92.60	―	―	46.95%	326.05%
CENTUM	―	₹37.16B	530.87	―	0.24%	8.64%	―

Avalon Technologies Limited Corporate Events

Avalon Technologies Increases Paid-Up Capital Through ESOP Allotment

Avalon Technologies Limited has announced the allotment of 20,088 equity shares to its employees following the exercise of Employee Stock Options under the ‘AVALON – Employee Stock Option Plan 2022’. This allotment has increased the company’s paid-up capital from INR 13,34,27,882 to INR 13,34,68,058. The move reflects the company’s commitment to employee incentives and may enhance employee satisfaction and retention, potentially impacting its operational efficiency and market position positively.

Avalon Technologies Confirms No Share Dematerialization Requests for Q3 2025

Avalon Technologies Limited announced that for the quarter and half-year ending September 30, 2025, there were no requests for dematerialization or rematerialization of shares, as confirmed by their Registrar and Share Transfer Agent, MUFG Intime India Private Limited. This indicates a stable shareholding structure with all shares in dematerialized form, reflecting positively on the company’s operational efficiency and compliance with SEBI regulations.