Avalon Technologies Limited (IN:AVALON)
:AVALON
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Avalon Technologies Limited
(AVALON)
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Rating:57Neutral
Price Target:
₹1,803.00
▲(102.04% Upside)
Action:Reiterated
Date:05/21/26
The score is held back primarily by persistently negative free cash flow and a high valuation (P/E ~54.7). Offsetting factors include improving profitability and a stronger recent balance sheet, plus strong technical uptrend momentum, though indicators look overbought and add near-term risk.
Positive Factors
Revenue and Profitability Improvement
Accelerating revenue and improving operating and net margins indicate stronger demand and better unit economics. Over a multi-quarter horizon this underpins sustainable earnings power, supports higher returns on equity (~15.6% in FY2026), and creates scope to reinvest in capacity and R&D.
Negative Factors
Persistent Negative Free Cash Flow
Consistent negative free cash flow means reported profits are not reliably converting to cash, constraining internal funding for growth or dividends. Over several quarters this forces reliance on external financing or equity, raising dilution or interest exposure and limiting strategic optionality.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Profitability Improvement
Accelerating revenue and improving operating and net margins indicate stronger demand and better unit economics. Over a multi-quarter horizon this underpins sustainable earnings power, supports higher returns on equity (~15.6% in FY2026), and creates scope to reinvest in capacity and R&D.
Read all positive factors
Avalon Technologies Limited (AVALON) vs. iShares MSCI India ETF (INDA)
Market Cap
₹116.16B
Dividend YieldN/A
Average Volume (3M)49.63K
Price to Earnings (P/E)103.0
Beta (1Y)1.52
Revenue Growth45.99%
EPS Growth76.41%
CountryIN
Employees830
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)13.19
Shares Outstanding66,787,700
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
₹1,233.00Price Target Upside38.17% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)24.65
Revenue Forecast (FY)₹20.81B
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 delivering contract manufacturing and related engineering services to OEM and product companies. Its key revenue streams are: (1) Electronics manufacturing services (core): revenue earned from producing...
Avalon Technologies Limited Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.29B | 16.03B | 10.98B | 8.67B | 9.45B | 8.39B |
| Gross Profit | 4.71B | 2.36B | 3.93B | 871.00M | 1.37B | 2.85B |
| EBITDA | 1.67B | 1.73B | 1.15B | 767.57M | 1.13B | 1.26B |
| Net Income | 874.59M | 1.13B | 634.39M | 279.85M | 525.03M | 632.08M |
Balance Sheet | ||||||
| Total Assets | 11.04B | 12.64B | 10.40B | 9.31B | 11.89B | 5.88B |
| Cash, Cash Equivalents and Short-Term Investments | 689.26M | 1.43B | 1.35B | 1.82B | 4.22B | 101.39M |
| Total Debt | 1.63B | 2.13B | 1.80B | 2.09B | 3.42B | 3.18B |
| Total Liabilities | 4.54B | 5.43B | 4.28B | 3.83B | 6.52B | 5.01B |
| Stockholders Equity | 6.50B | 7.22B | 6.12B | 5.47B | 5.37B | 887.84M |
Cash Flow | ||||||
| Free Cash Flow | -329.35M | -68.95M | -211.23M | -182.31M | -687.20M | -20.83M |
| Operating Cash Flow | -101.74M | 467.49M | 250.56M | 172.89M | -414.24M | 138.59M |
| Investing Cash Flow | 254.02M | -645.15M | 537.98M | -1.46B | -254.08M | -165.69M |
| Financing Cash Flow | -283.00M | 192.60M | -522.84M | -2.51B | 4.52B | -208.36M |
Avalon Technologies Limited Technical Analysis
Positive
892.40
Price Trends
1313.37
Positive
1132.49
Positive
1059.41
Positive
Market Momentum
117.07
Negative
69.03
Neutral
88.04
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 892.4 is below the 20-day moving average (MA) of 1569.74, below the 50-day MA of 1313.37, and below the 200-day MA of 1059.41, indicating a bullish trend. The MACD of 117.07 indicates Negative momentum. The RSI at 69.03 is Neutral, neither overbought nor oversold. The STOCH value of 88.04 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 (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ₹51.52B | 12.55 | ― | 1.62% | 7.55% | 7.12% | |
73 Outperform | ₹250.71B | 78.15 | ― | 0.20% | 27.28% | 76.63% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | ₹116.16B | 103.00 | ― | ― | 45.99% | 76.41% | |
57 Neutral | ₹37.25B | 50.31 | ― | ― | -16.99% | 7.58% | |
53 Neutral | ₹53.49B | -34.43 | ― | 0.25% | 6.93% | -2481.56% | |
47 Neutral | ₹2.02B | 184.40 | ― | 0.78% | -39.35% | -78.01% |
* Technology Sector Average
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Avalon Technologies Limited Corporate Events
Avalon Technologies Posts Strong FY26 Results, Expands ESOP Allotment
May 6, 2026
Avalon Technologies reported audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, showing total income of ₹8,649.58 million and annual profit of ₹893.74 million, up from the prior year. T...
Avalon Technologies Posts Robust FY26 Growth With Rising Margins and Strong Order Book
May 6, 2026
Avalon Technologies reported strong growth for the fourth quarter and full year ended March 31, 2026, with Q4 revenue from operations rising 40% year-on-year to INR 479.9 crore and 14.9% sequentially, while Q4 PAT jumped 69.5% and margins improved...
Avalon Technologies Releases FY26 Investor Presentation on Audited Results
May 6, 2026
Avalon Technologies Limited has released an investor presentation detailing its audited standalone and consolidated financial results for the quarter and full year ended March 31, 2026. The disclosure, approved by the board on May 6, 2026, undersc...
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.