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Avalon Technologies Limited
(AVALON)
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Rating:63Neutral
Price Target:
₹2,132.00
▲(1.05% Upside)
Action:Reiterated
Date:09/19/26
The score is supported by strong technical momentum and improving profitability with a healthier recent balance sheet, but it is held back by weak cash generation (negative free cash flow) and a very expensive valuation (P/E ~126.8).
Positive Factors
Strong Revenue and Profit Growth
The latest year shows revenue growth accelerating alongside stronger margins and returns, indicating improving operating performance rather than growth without profitability. If sustained, this combination can support reinvestment, strengthen customer confidence, and improve earnings power over the next several quarters.
Negative Factors
Persistently Negative Free Cash Flow
Persistent negative free cash flow means reported profits have not consistently converted into cash, limiting internally funded growth and potentially increasing reliance on working-capital financing. The deterioration in FY2026 makes cash conversion an important constraint on otherwise improving earnings.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue and Profit Growth
The latest year shows revenue growth accelerating alongside stronger margins and returns, indicating improving operating performance rather than growth without profitability. If sustained, this combination can support reinvestment, strengthen customer confidence, and improve earnings power over the next several quarters.
Read all positive factors
Avalon Technologies Limited (AVALON) vs. iShares MSCI India ETF (INDA)
Market Cap
₹137.19B
Dividend YieldN/A
Average Volume (3M)171.77K
Price to Earnings (P/E)102.2
Beta (1Y)1.21
Revenue Growth44.38%
EPS Growth65.57%
CountryIN
Employees1,525
SectorGeneral
Sector StrengthN/A
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)20.02
Shares Outstanding66,882,300
10 Day Avg. Volume21,847
30 Day Avg. Volume171,771
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-26.06% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering2
EPS Forecast (FY)27.27
Revenue Forecast (FY)₹21.83B
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 | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 17.64B | 16.03B | 10.98B | 8.67B | 9.45B | 8.39B |
| Gross Profit | 3.48B | 2.36B | 1.41B | 871.00M | 1.37B | 2.85B |
| EBITDA | 2.29B | 2.02B | 1.15B | 767.57M | 1.13B | 1.26B |
| Net Income | 1.34B | 1.13B | 634.39M | 279.85M | 525.03M | 632.08M |
Balance Sheet | ||||||
| Total Assets | 0.00 | 12.64B | 10.40B | 9.31B | 11.89B | 5.88B |
| Cash, Cash Equivalents and Short-Term Investments | 1.43B | 1.43B | 1.35B | 1.82B | 4.22B | 101.39M |
| Total Debt | 0.00 | 2.13B | 1.80B | 2.09B | 3.42B | 3.18B |
| Total Liabilities | -7.22B | 5.43B | 4.28B | 3.83B | 6.52B | 5.01B |
| Stockholders Equity | 7.22B | 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
2109.90
Price Trends
2232.87
Negative
1989.08
Positive
1523.72
Positive
Market Momentum
-68.20
Positive
50.20
Neutral
37.61
Neutral
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 2109.9 is below the 20-day moving average (MA) of 2194.23, below the 50-day MA of 2232.87, and above the 200-day MA of 1523.72, indicating a neutral trend. The MACD of -68.20 indicates Positive momentum. The RSI at 50.20 is Neutral, neither overbought nor oversold. The STOCH value of 37.61 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | ₹301.93B | 81.15 | ― | 0.10% | 53.03% | 70.86% | |
63 Neutral | ₹137.19B | 102.22 | ― | ― | 44.38% | 65.57% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
55 Neutral | ₹211.35B | 61.23 | ― | ― | 34.85% | 4.08% | |
53 Neutral | ₹60.64B | 72.15 | ― | ― | -1.51% | 2.80% | |
49 Neutral | ₹58.99B | 111.45 | ― | 0.13% | -1.41% | 605.33% | |
47 Neutral | ₹11.18B | -75.11 | ― | 0.93% | 132.73% | -227.63% |
* General Sector Average
IN:AVALON
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Avalon Technologies Limited Corporate Events
Avalon forms Zollner joint venture subsidiary to expand EMS platform
Oct 20, 2026
Avalon Technologies Limited has incorporated a new wholly owned subsidiary in India, Zollner Avalon Private Limited, to serve as a manufacturing and services platform for printed circuit board assembly, box-build and system integration, testing, i...
Avalon promoter Bhaskar Srinivasan discloses sale of equity stake under SEBI SAST norms
Oct 1, 2026
Avalon Technologies has notified the stock exchanges that it received a disclosure under Regulation 29(2) of the SEBI Substantial Acquisition of Shares and Takeovers Regulations, 2011. The filing pertains to the sale of equity shares in Avalon Tec...
Avalon Technologies Approves New ESOP Grant to Deepen Employee Alignment
Sep 2, 2026
Avalon Technologies Limited has approved a new round of grants under its Avalon Employee Stock Option Plan 2022, issuing 90,000 options to eligible staff as part of its fifth ESOP grant within a larger shareholder-approved pool of 3 million option...
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.