Check Before You Invest : Avalon Technologies Ltd

Q: Which industry/sub-sector does Avalon Technologies Ltd belong to?

Avalon Technologies Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electronics - Components segment.

Q: Is Avalon Technologies Ltd a good quality company?

Avalon Technologies Ltd is a weak quality company, based on a inconsistent multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Avalon Technologies Ltd undervalued or overvalued?

Avalon Technologies Ltd appears Overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 109.19, Historic Median: 106.62. Price to Book, Current: 11.91, Historic Median: 5.14. Price to Sales, Current: 11.89, Historic Median: 7.73. EV to EBITDA, Current: 73.1, Historic Median: 57.53

Q: Is Avalon Technologies Ltd a good buy now?

Avalon Technologies Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Avalon Technologies Ltd?

Avalon Technologies Ltd revenue growth is 43% for FY-2025, which is above its 5-year CAGR of 14.07%, indicating faster growth.

Q: Gross Profit margin of Avalon Technologies Ltd?

Avalon Technologies Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.6% for FY-2025, which is above its 5-year median of 9.7%, indicating increasing margins.

Q: Operating Profit Margin of Avalon Technologies Ltd?

Avalon Technologies Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.82% for FY-2025, which is below its 5-year median of 8.51% indicating decreasing margins.

Q: Net Profit Margin of Avalon Technologies Ltd?

Avalon Technologies Ltd Net Profit Margin is 8% for FY-2025, is above its 5-year median of 6.27%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 11.6, Historic Median: 9.7. Operating Profit Margin (%), Current: 7.82, Historic Median: 8.51. Net Profit Margin (%), Current: 8, Historic Median: 6.27

Q: Return on Asset of Avalon Technologies Ltd?

Avalon Technologies Ltd Return on Asset is 5.99%, which is above its 5-year historical median of 4.09%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of Avalon Technologies Ltd?

Avalon Technologies Ltd Return on capital employed is 9.56% for FY-2025, which is in line with its 5-year historical median of 9.57%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Check Before You Invest : Avalon Technologies Ltd

Snapshot

Q.1 Which industry/sub-sector does Avalon Technologies Ltd belong to?

Avalon Technologies Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electronics - Components segment.

Q.2 Is Avalon Technologies Ltd a good quality company?

Avalon Technologies Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Avalon Technologies Ltd undervalued or overvalued?

Avalon Technologies Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	109.19	106.62
Price to Book	11.91	5.14
Price to Sales	11.89	7.73
EV to EBITDA	73.1	57.53

Q.4 Is Avalon Technologies Ltd a good buy now?

Avalon Technologies Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Avalon Technologies Ltd?

Avalon Technologies Ltd revenue growth is 43% for FY-2025, which is above its 5-year CAGR of 14.07%, indicating faster growth.

Q.2 Gross Profit margin of Avalon Technologies Ltd?

Avalon Technologies Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.6% for FY-2025, which is above its 5-year median of 9.7%, indicating increasing margins.

Q.3 Operating Profit Margin of Avalon Technologies Ltd?

Avalon Technologies Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.82% for FY-2025, which is below its 5-year median of 8.51% indicating decreasing margins.

Q.4 Net Profit Margin of Avalon Technologies Ltd?

Avalon Technologies Ltd Net Profit Margin is 8% for FY-2025, is above its 5-year median of 6.27%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	11.6	9.7
Operating Profit Margin (%)	7.82	8.51
Net Profit Margin (%)	8	6.27

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Avalon Technologies Ltd?

Avalon Technologies Ltd Return on Asset is 5.99%, which is above its 5-year historical median of 4.09%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Avalon Technologies Ltd?

Avalon Technologies Ltd Return on capital employed is 9.56% for FY-2025, which is in line with its 5-year historical median of 9.57%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Avalon Technologies Ltd?

Avalon Technologies Ltd Return on equity is 7.24% for FY-2025, which is in line with its 5-year historical median of 7.24%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Avalon Technologies Ltd?

Avalon Technologies Ltd Cash conversion cycle is 188 days, in line with its 5-year historical median of 188 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.75	0.75
ROE (%)	7.24	7.24
ROCE (%)	9.56	9.57
Cash Conversion Cycle	188 days	188 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Avalon Technologies Ltd?

Avalon Technologies Ltd Debt-to-Equity ratio is 0.05, which is lower the industry average of 0.25, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Avalon Technologies Ltd?

Avalon Technologies Ltd Debt to cash flow from operations is 8.39, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Avalon Technologies Ltd?

Q.1 Promoter shareholding and pledge status of Avalon Technologies Ltd?

Promoters hold 44.42% of the Avalon Technologies Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Avalon Technologies Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Avalon Technologies Ltd vs industry peers?

Avalon Technologies Ltd revenue CAGR is 14.07%, compared to the industry median CAGR of 3.03%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	43	3
Gross Profit Growth (%)	54.2	16
Operating Profit Growth (%)	53.1	19.2
Net Profit Growth (%)	59.4	16.2

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.75	0.79
ROE (%)	7.24	7.33
ROCE (%)	9.56	9.29
Cash Conversion Cycle (days)	188.24	121

Valuation & price assessment

Q.1 Stock return of Avalon Technologies Ltd over the last decade?

Over the last 3 year(s), the stock has delivered a CAGR of 51.12% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	51.1%	69.6%

Q.2 Valuation ratios of Avalon Technologies Ltd vs historical?

The current P/E ratio of 109.19 is in line with than its historical median of 106.62, indicating that the stock is trading near its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	109.19	106.62	37.32
Price to Book	11.91	5.14	3.80
Price to Sales	11.89	7.73	4.16
EV to EBITDA	73.1	57.53	22.30

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Check Before You Invest : Avalon Technologies Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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