Avalon Technologies Limited (AVALON) AI Stock Analysis

• Market Cap: ₹76.66B
• Dividend Yield: N/A
• Average Volume (3M): 49.63K
• Price to Earnings (P/E): 95.0
• Beta (1Y): 0.92
• Revenue Growth: 46.80%
• EPS Growth: 201.41%
• Country: IN
• Employees: 830
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 3.80
• 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: ₹965.00
• Price Target Upside: -1.70% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: ₹1,108.00 ▲(12.87% 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.

Avalon Technologies Limited Business Overview & Revenue Model

Company Description

Avalon Technologies Limited (AVALON) is a leading provider of technology solutions, specializing in engineering services and manufacturing for various sectors including aerospace, automotive, industrial, and telecommunications. The company focuses on delivering high-quality products and services that encompass design, prototyping, and production, leveraging advanced technology and innovative processes to meet the unique needs of its clients.

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: Negative
• Last Price: 981.65
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 Negative. The current price of 981.65 is below the 20-day moving average (MA) of 1083.20, below the 50-day MA of 1078.45, and above the 200-day MA of 876.54, indicating a neutral trend. The MACD of -31.60 indicates Positive momentum. The RSI at 37.55 is Neutral, neither overbought nor oversold. The STOCH value of 20.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	70 Outperform	₹150.99B	69.73	―	0.18%	1.30%	111.88%
CYIENTDLM	67 Neutral	₹36.07B	44.16	―	―	9.86%	21.38%
MASTEK	65 Neutral	₹66.26B	18.10	―	1.53%	11.91%	-1.02%
NITIRAJ	63 Neutral	₹1.96B	31.81	―	0.78%	-3.39%	-2.10%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AVALON	59 Neutral	₹76.66B	95.04	―	―	46.80%	201.41%
CENTUM	52 Neutral	₹36.23B	517.57	―	0.24%	10.29%	―

Avalon Technologies Limited Corporate Events

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.

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.