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 6-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 14.07%, indicating faster growth.

Q.2 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.3 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.4 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.5 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	0.75	0.75
ROE	7.24	7.24
ROCE	9.56	9.57
Cash Conversion Cycle	188 days	188 days

Q.6 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.7 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.8 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	5-year Historic Median
Gross Profit Margin	11.6	9.7
Operating Profit Margin	7.82	8.51
Net Profit Margin	8	6.27

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 0.33, 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

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)

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 9.26%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	43	9.3
Gross Profit Growth	54.2	14.1
Operating Profit Growth	53.1	15.2
Net Profit Growth	59.4	14.5

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.75	0.83
ROE	7.24	8.53
ROCE	9.56	9.68
Cash Conversion Cycle (days)	188.24	129

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 44.09% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	44.1%	26.6%

Q.3 Valuation ratios of Avalon Technologies Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 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	86.63	113.55	37.27
Price to Book	8.94	5.58	3.80
Price to Sales	8.96	8.03	4.14
EV to EBITDA	58.49	61.32	22.41

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