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Avalon Technologies Limited
(AVALON)
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Rating:60Neutral
Price Target:
₹2,065.00
▲(18.56% Upside)
Action:Reiterated
Date:08/09/26
The score is driven primarily by mixed fundamentals: improving growth/profitability and a healthier balance sheet are offset by persistently negative free cash flow and weak cash conversion. Technicals are supportive with a strong uptrend and positive momentum, but valuation is a meaningful headwind due to the very high P/E.
Positive Factors
Accelerating Revenue Growth
Sustained, accelerating top-line growth reflects stronger demand and successful program wins across Avalon’s EMS end markets. Over 2–6 months this supports scale benefits, higher factory utilization and longer-term OEM relationships that underpin recurring manufacturing revenues and expansion opportunities.
Negative Factors
Persistently Negative Free Cash Flow
Consistent negative free cash flow constrains the firm's ability to self‑fund capex, repay debt, or return capital. Over months this limits strategic flexibility, may force reliance on external financing for growth or working capital, and raises execution risk if new program cash conversion lags expectations.
Read all positive and negative factors
Positive Factors
Negative Factors
Accelerating Revenue Growth
Sustained, accelerating top-line growth reflects stronger demand and successful program wins across Avalon’s EMS end markets. Over 2–6 months this supports scale benefits, higher factory utilization and longer-term OEM relationships that underpin recurring manufacturing revenues and expansion opportunities.
Read all positive factors
Avalon Technologies Limited (AVALON) vs. iShares MSCI India ETF (INDA)
Market Cap
₹129.44B
Dividend YieldN/A
Average Volume (3M)49.63K
Price to Earnings (P/E)98.1
Beta (1Y)1.48
Revenue Growth44.38%
EPS Growth65.54%
CountryIN
Employees1,142
SectorGeneral
Sector StrengthN/A
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)16.94
Shares Outstanding66,811,750
10 Day Avg. Volume68,026
30 Day Avg. Volume49,625
Financial Highlights & Ratios
PEG Ratio0.72
Price to Book (P/B)8.57
Price to Sales (P/S)3.86
P/FCF Ratio-896.84
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹1,560.00Price Target Upside-10.43% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering2
EPS Forecast (FY)27.22
Revenue Forecast (FY)₹21.62B
Avalon Technologies Limited Business Overview & Revenue Model
Company Description
Established in Chennai, India, in 1995, Avalon Technologies Limited, previously known as Avalon Technologies Private Limited, operates as a global provider of integrated electronic manufacturing services, with operations spanning India, the United...
How the Company Makes Money
Avalon Technologies primarily makes money by providing contract manufacturing and related engineering services to customers who outsource the build and integration of electronic products and sub-systems. Key revenue streams typically include: (1) ...
Avalon Technologies Limited Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
38
Negative
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 16.03B | 10.98B | 8.67B | 9.45B | 8.39B |
| Gross Profit | 2.36B | 3.93B | 871.00M | 1.37B | 2.85B |
| EBITDA | 2.02B | 1.15B | 767.57M | 1.13B | 1.26B |
| Net Income | 1.13B | 634.39M | 279.85M | 525.03M | 632.08M |
Balance Sheet | |||||
| Total Assets | 12.64B | 10.40B | 9.31B | 11.89B | 5.88B |
| Cash, Cash Equivalents and Short-Term Investments | 1.43B | 1.35B | 1.82B | 4.22B | 101.39M |
| Total Debt | 2.13B | 1.80B | 2.09B | 3.42B | 3.18B |
| Total Liabilities | 5.43B | 4.28B | 3.83B | 6.52B | 5.01B |
| Stockholders Equity | 7.22B | 6.12B | 5.47B | 5.37B | 887.84M |
Cash Flow | |||||
| Free Cash Flow | -68.95M | -211.23M | -182.31M | -687.20M | -20.83M |
| Operating Cash Flow | 467.49M | 250.56M | 172.89M | -414.24M | 138.59M |
| Investing Cash Flow | -645.15M | 537.98M | -1.46B | -254.08M | -165.69M |
| Financing Cash Flow | 192.60M | -522.84M | -2.51B | 4.52B | -208.36M |
Avalon Technologies Limited Technical Analysis
Positive
1741.75
Price Trends
1736.98
Positive
1447.77
Positive
1207.62
Positive
Market Momentum
61.71
Negative
64.71
Neutral
81.00
Negative
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 1741.75 is below the 20-day moving average (MA) of 1786.91, above the 50-day MA of 1736.98, and above the 200-day MA of 1207.62, indicating a bullish trend. The MACD of 61.71 indicates Negative momentum. The RSI at 64.71 is Neutral, neither overbought nor oversold. The STOCH value of 81.00 is Negative, 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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | ₹288.24B | 76.50 | ― | 0.20% | 53.03% | 70.86% | |
60 Neutral | ₹129.44B | 98.10 | ― | ― | 44.38% | 65.54% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
55 Neutral | ₹248.70B | 74.65 | ― | ― | 34.85% | 3.49% | |
53 Neutral | ₹56.28B | -119.93 | ― | 0.17% | 6.93% | -2658.56% | |
53 Neutral | ₹56.31B | 66.57 | ― | ― | -11.90% | 26.33% | |
47 Neutral | ₹8.87B | -72.02 | ― | ― | 132.73% | -227.33% |
* General Sector Average
IN:AVALON
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.