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Check Before You Invest : Avalon Technologies Ltd

BSE: 543896 NSE: AVALON ISIN: INE0LCL01028
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Electronics - Components

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 quality company, based on a 10 year financial track record.
Q.3 Is Avalon Technologies Ltd undervalued or overvalued?
Avalon Technologies Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.
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

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 14.1% , 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 with its 5 year median of 6.27%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 11.6 9.7
Operating Profit Margin 7.82 8.51
Net Profit Margin 8 6.27
Q.5 Return on Asset of Avalon Technologies Ltd?
Avalon Technologies Ltd Return on Asset is 5.99(x), which is above its 5 year historical median of 4.09(x), indicating improved asset utilization efficiency.
Q.6 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 historical median of 7.24%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Avalon Technologies Ltd?
Avalon Technologies Ltd Return on capital employed is 9.56% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Avalon Technologies Ltd?
Avalon Technologies Ltd Cash conversion cycle is 188 , below its historical median of 188 , indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.75 0.75
ROE 7.24 7.24
ROCE 9.56 9.57
Cash Conversion Cycle 188 188
Q.9 Debt to Equity ratio of Avalon Technologies Ltd?
Avalon Technologies Ltd Debt-to-Equity ratio is 0.05 , which is lower with 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, indicating the business is not able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Avalon Technologies Ltd?
Promoters hold 44.43% of the Avalon Technologies Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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 3.89% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 631.8 41.9
Gross Profit 73.3 5.3
Operating Profit 49 5.2
Net Profit 51 2
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.75 0.79
ROE 7.24 7.33
ROCE 9.56 9.29
Cash Conversion Cycle 188.24 121

Valuation & price assessment

Q.1 Stock return of Avalon Technologies Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 0% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - - - 28.6%
Q.3 Valuation ratios of Avalon Technologies Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 86.59 78.61 44.31
Price to Book 8.93 5.09 4.02
Price to Sales 8.96 7.34 4.15
EV to EBITDA 58.46 47.98 23.98

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