Check Before You Invest : Avana Electrosystems Ltd

Q: Which industry/sub-sector does Avana Electrosystems Ltd belong to?

Avana Electrosystems Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electric Equipment segment.

Q: Is Avana Electrosystems Ltd a good quality company?

Avana Electrosystems 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 Avana Electrosystems Ltd undervalued or overvalued?

Avana Electrosystems 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: 41.36, Historic Median: 19.64. Price to Book, Current: 7.88, Historic Median: 3.74. Price to Sales, Current: 5.59, Historic Median: 2.66. EV to EBITDA, Current: 26.06, Historic Median: 12.39

Q: Is Avana Electrosystems Ltd a good buy now?

Avana Electrosystems 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: Gross Profit margin of Avana Electrosystems Ltd?

Avana Electrosystems Ltd Gross profit margin which is the profit after deduction of direct costs, is 20% for FY-2025, which is above its 3-year median of 11.7%, indicating increasing margins.

Q: Operating Profit Margin of Avana Electrosystems Ltd?

Avana Electrosystems Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 19.13% for FY-2025, which is above its 3-year median of 13.31% indicating increasing margins.

Q: Net Profit Margin of Avana Electrosystems Ltd?

Avana Electrosystems Ltd Net Profit Margin is 13.52% for FY-2025, is above its 3-year median of 7.59%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 20, Historic Median: 11.7. Operating Profit Margin (%), Current: 19.13, Historic Median: 13.31. Net Profit Margin (%), Current: 13.52, Historic Median: 7.59

Q: Return on Asset of Avana Electrosystems Ltd?

Avana Electrosystems Ltd Return on Asset is 19.03%, which is above its 3-year historical median of 12.14%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of Avana Electrosystems Ltd?

Avana Electrosystems Ltd Return on capital employed is 49.56% for FY-2025, which is above its 3-year historical median of 35.25%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q: Return on Equity (ROE) of Avana Electrosystems Ltd?

Avana Electrosystems Ltd Return on equity is 47.11% for FY-2025, which is above its 3-year historical median of 35.07%, indicating the business is making better use of its shareholders capital.

Check Before You Invest : Avana Electrosystems Ltd

Snapshot

Q.1 Which industry/sub-sector does Avana Electrosystems Ltd belong to?

Avana Electrosystems Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electric Equipment segment.

Q.2 Is Avana Electrosystems Ltd a good quality company?

Avana Electrosystems 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 Avana Electrosystems Ltd undervalued or overvalued?

Avana Electrosystems 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	3-year Historic Median
Price to Earnings	41.36	19.64
Price to Book	7.88	3.74
Price to Sales	5.59	2.66
EV to EBITDA	26.06	12.39

Q.4 Is Avana Electrosystems Ltd a good buy now?

Avana Electrosystems 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.

Q.1 Gross Profit margin of Avana Electrosystems Ltd?

Avana Electrosystems Ltd Gross profit margin which is the profit after deduction of direct costs, is 20% for FY-2025, which is above its 3-year median of 11.7%, indicating increasing margins.

Q.2 Operating Profit Margin of Avana Electrosystems Ltd?

Avana Electrosystems Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 19.13% for FY-2025, which is above its 3-year median of 13.31% indicating increasing margins.

Q.3 Net Profit Margin of Avana Electrosystems Ltd?

Avana Electrosystems Ltd Net Profit Margin is 13.52% for FY-2025, is above its 3-year median of 7.59%, indicating increasing margins.

	Current Level	3-year Historic Median
Gross Profit Margin (%)	20	11.7
Operating Profit Margin (%)	19.13	13.31
Net Profit Margin (%)	13.52	7.59

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Avana Electrosystems Ltd?

Avana Electrosystems Ltd Return on Asset is 19.03%, which is above its 3-year historical median of 12.14%, indicating improved asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of Avana Electrosystems Ltd?

Avana Electrosystems Ltd Return on capital employed is 49.56% for FY-2025, which is above its 3-year historical median of 35.25%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.6 Return on Equity (ROE) of Avana Electrosystems Ltd?

Avana Electrosystems Ltd Return on equity is 47.11% for FY-2025, which is above its 3-year historical median of 35.07%, indicating the business is making better use of its shareholders capital.

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

Q.7 Debt to Equity ratio of Avana Electrosystems Ltd?

Avana Electrosystems Ltd Debt-to-Equity ratio is 0.26, which is lower the industry average of 0.29, indicating lower debt levels in the industry.

Q.8 Debt to cash flow from operations of Avana Electrosystems Ltd?

Avana Electrosystems Ltd Debt to cash flow from operations is 0.84, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Avana Electrosystems Ltd?

Q.1 Promoter shareholding and pledge status of Avana Electrosystems Ltd?

Promoters hold 73.64% of the Avana Electrosystems Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Avana Electrosystems Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Avana Electrosystems Ltd vs industry peers?

Avana Electrosystems Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 24.05%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	3-year Industry Median
Revenue Growth (%)	-	24.1
Gross Profit Growth (%)	100	39.5
Operating Profit Growth (%)	71.4	42.8
Net Profit Growth (%)	100	44.2

Operating Efficiency

	Current Level	3-year Industry Median
Asset Turnover (x)	1.41	1.18
ROE (%)	47.11	14.12
ROCE (%)	49.56	17.12
Cash Conversion Cycle (days)	123.91	85

Valuation & price assessment

Q.1 Stock return of Avana Electrosystems Ltd over the last decade?

Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-

Q.2 Valuation ratios of Avana Electrosystems Ltd vs historical?

The current P/E ratio of 41.36 is higher than its historical median of 19.64, indicating that the stock is trading above its historical average valuation.

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

Valuation Ratios	Current	3-year Historic Median	3-year Industry Median
Price to Earnings	41.36	19.64	43.78
Price to Book	7.88	3.74	4.74
Price to Sales	5.59	2.66	3.09
EV to EBITDA	26.06	12.39	21.60

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Check Before You Invest : Avana Electrosystems 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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