In the bustling world of electronics, few things captivate our interest more than the rise and fall of share prices. Today, we step into the realm of Avalon Technologies Limited, a significant player in electronic manufacturing. Yet, our focus isn’t solely on the numbers.
This is a journey through Avalon’s evolution in the dynamic electronics industry, its growth story, and the unexpected twists that have emerged along the way. It’s a narrative that goes beyond data.
In this article, we’ll explore Avalon’s share prices in the context of the electronics industry. We won’t get lost in complex data, but we’ll certainly delve into the fascinating interplay of forces that have influenced Avalon’s path in this exciting sector. Here, innovation meets opportunity, and every fluctuation adds to the intrigue of Avalon’s journey.
About Avalon Tech Ltd
Avalon Technologies Limited started its journey back in 1999 and has since become a key player in the Electronic Manufacturing Services (EMS) industry. They’ve been around for almost two decades, gaining the trust of businesses looking for all-in-one solutions for precision-engineered products. Avalon’s dedication to being top-notch has earned them a leadership position in this field.
Avalon Tech Ltd offers a diverse range of products and services, including PCB Design and Assembly, Metals/Sheet Metal Fabrication, Cable Assembly and Wire Harnesses, Transformers, Chokes and Inductors, and Injection Moulded Plastics. These capabilities allow the company to meet the exacting requirements of its clients.
A standout feature of Avalon Tech Ltd is its global presence. As the only Indian EMS company with full-fledged manufacturing facilities in the United States, the company gains a unique advantage, particularly in serving North American markets.
Avalon Tech Ltd serves a wide variety of industries. This includes industries with products that stay around for a long time, like industrial equipment, mobility solutions, and medical devices. They also work with high-growth sectors, such as solar power, electric vehicles, hydrogen in clean energy, and the digital infrastructure needed for communications.
Q1 FY 2024 Key Points And Summary:
- Revenue Growth: The company witnessed a substantial year-on-year increase in revenue from operations, amounting to an impressive 19.9%. However, it’s worth noting that there was a quarter-on-quarter (QoQ) decline of 14%.
- Margin Analysis: The company also saw positive trends in its gross margin, with a YoY increase of 9%. Nevertheless, on a QoQ basis, there was a decrease of 25%.
- EBITDA: Recorded a notable YoY growth of 17%. However, when examining the QoQ figures, there was a decline of 61%, indicating some short-term fluctuations.
- Profit After Tax (PAT): The Profit After Tax (PAT) for the period under review stood at 7 crores. This represents a YoY decline of 24% and a significant QoQ drop of 69%.
- Cash Reserves: The company’s cash reserves currently amount to INR 125 crores. This surplus is earmarked for both reserves and future growth capital investments, underscoring their commitment to financial stability and expansion.
When | Maximum Price | Minimum Price |
September 2023 | ₹607.16 | ₹492.87 |
October 2023 | ₹581.53 | ₹483.21 |
November 2023 | ₹591.11 | ₹473.73 |
December 2023 | ₹588.30 | ₹489.37 |
In the year 2023, the predicted share price of the company exhibited some fluctuations.
The highest share price during the year was in December, reaching ₹588.30, indicating a peak in that period. On the other hand, the lowest share price for the year was observed in November, with a value of ₹473.73, representing the lowest point during the year.
When | Maximum Price | Minimum Price |
January 2024 | ₹549.29 | ₹477.64 |
February 2024 | ₹560.50 | ₹487.39 |
March 2024 | ₹571.94 | ₹497.34 |
April 2024 | ₹555.28 | ₹482.85 |
May 2024 | ₹547.07 | ₹475.72 |
June 2024 | ₹566.77 | ₹492.84 |
July 2024 | ₹561.10 | ₹487.91 |
August 2024 | ₹583.54 | ₹507.43 |
September 2024 | ₹606.89 | ₹527.73 |
October 2024 | ₹594.99 | ₹517.38 |
November 2024 | ₹612.84 | ₹532.90 |
December 2024 | ₹628.16 | ₹546.22 |
- The highest share price during the year was in December 2024, reaching ₹628.16, indicating a peak in that period.
- On the other hand, the lowest share price for the year was observed in January 2024, with a value of ₹477.64, representing the lowest point during the year.
These values illustrate the range of share price fluctuations throughout the year.
when | Maximum Price | Minimum Price |
January 2025 | ₹640.72 | ₹492.86 |
February 2025 | ₹657.15 | ₹505.50 |
March 2025 | ₹682.78 | ₹525.21 |
April 2025 | ₹669.39 | ₹514.92 |
May 2025 | ₹649.89 | ₹499.92 |
June 2025 | ₹679.14 | ₹522.41 |
July 2025 | ₹665.82 | ₹512.17 |
August 2025 | ₹686.41 | ₹528.01 |
September 2025 | ₹710.44 | ₹546.49 |
October 2025 | ₹728.91 | ₹560.70 |
November 2025 | ₹747.13 | ₹574.72 |
December 2025 | ₹765.81 | ₹589.09 |
The share price for the year 2025 experienced fluctuations, with its highest point occurring in December at ₹765.81 and the lowest point in January at ₹492.86, illustrating the range of price variations over the course of the year.
Year | Maximum Price (₹) |
Minimum Price (₹)
|
2026 | ₹804.10 | ₹562.87 |
2027 | ₹884.51 | ₹619.16 |
2028 | ₹1,238.32 | ₹619.16 |
2029 | ₹1,072.14 | ₹536.07 |
2030 | ₹1,393.78 | ₹975.64 |
In the following years, the company’s share price demonstrated notable variations:
- In 2026, the highest share price was recorded at ₹804.10, while the lowest was ₹562.87.
- In 2027, the share price ranged from a high of ₹884.51 to a low of ₹619.16.
- In 2028, there was a substantial increase, with the share price ranging from ₹1,238.32 (maximum) to ₹619.16 (minimum).
- In 2029, the share price reached a high of ₹1,072.14 and a low of ₹536.07.
- In 2030, the share price exhibited a considerable range, with a high of ₹1,393.78 and a low of ₹975.64.
The share prices have been on an upward trend in recent years, showing positive signs for the company’s growth potential. This suggests a hopeful outlook for investors and a strong path forward for the company.
Avalon Tech Ltd Financial Condition (Last 5 Years)
Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | |
Sales + (In Crore INR) |
642 | 690 | 841 | 945 |
Expenses + (In Crore INR) |
577 | 624 | 743 | 832 |
Operating Profit (In Crore INR) |
64 | 66 | 98 | 113 |
OPM % | 10% | 10% | 12% | 12% |
Other Income + (In Crore INR) | 11 | 5 | 31 | 14 |
Interest (In Crore INR) |
45 | 27 | 25 | 35 |
Depreciation (In Crore INR) |
16 | 16 | 17 | 20 |
Profit before tax (In Crore INR) |
15 | 29 | 86 | 73 |
Tax % | 19% | 20% | 21% | 28% |
Net Profit + (In Crore INR) |
12 | 23 | 68 | 52 |
EPS in Rs | 754.25 | 1,345.65 | 3,954.92 | 9.06 |
Dividend Payout % | 0% | 0% | 0% | 0% |
- Sales: The sales figures have shown consistent growth over the years, increasing from ₹642 crores in March 2020 to ₹945 crores in March 2023.
- Expenses: Corresponding to the increase in sales, expenses have also risen from ₹577 crores in March 2020 to ₹832 crores in March 2023.
- Operating Profit: The operating profit has steadily increased from ₹64 crores in March 2020 to ₹113 crores in March 2023.
- Operating Profit Margin (OPM): The operating profit margin has remained stable at around 10% in 2020 and 2021 but showed a positive trend, reaching 12% in March 2023.
- Other Income: Other income has varied, with significant growth in March 2022 (₹31 crores) compared to earlier years. However, it dropped to ₹14 crores in March 2023.
- Net Profit: Despite fluctuations, the net profit has shown an upward trend, growing from ₹12 crores in March 2020 to ₹52 crores in March 2023.
- Earnings Per Share (EPS): The earnings per share have experienced substantial growth, from ₹754.25 in March 2020 to ₹9.06 in March 2023, indicating enhanced shareholder value.
- Dividend Payout: There have been no dividend payouts in the years analyzed, suggesting that the company has reinvested profits for growth.
In summary, the company has demonstrated positive revenue growth, improved profitability, and a focus on reinvesting in the business for future expansion. It’s important to continue managing expenses, interest costs, and tax obligations effectively to sustain and enhance this financial performance.
FAQs
The share price target for 2023 is expected to fall within the range of ₹607 (maximum) to ₹473.73 (minimum).
The expected share price range for 2025 sets a target between ₹765.81 (highest) and ₹492.86 (lowest).
The share price target for 2030 is expected to fall within the range of ₹1,393.78 (maximum) to ₹975.64 (minimum) based on the observed fluctuations in share prices.
Avalon Technologies faces a changing business landscape, including economic shifts, technology advances, competition, and rules. They need to adapt to these changes, manage their resources wisely, and keep customers satisfied while staying safe from cyber threats.
Given the upward trend in share prices over the past few years, there is reason to be optimistic about the future. While no one can predict future share prices with absolute certainty, the positive trajectory suggests that the share price could potentially reach or even exceed ₹750 by the year 2030. It’s an exciting prospect that highlights the company’s promising outlook and its potential to create value for shareholders.
What Is The Return On Equity (ROE) ?
Currently, the return on equity is 16% and it had been 23% for the last three years.
Should One Invest In Avalon Tech Ltd?
Avalon Technologies Limited, a big name in electronic manufacturing, has seen its share prices go up and down over time. Right now, it’s valued at ₹3,283 Crores, with each share costing ₹502. The share price has been as high as ₹732 and as low as ₹347, and people are generally optimistic about it, as shown by a Price/Earnings ratio of 62.5.
The company’s profits have been growing nicely, especially in the last three years, with a solid 66% increase. They’re also good at managing their money, with a Return on Capital Employed (ROCE) of 16.7% and a Return on Equity (ROE) of 15.8%.
But here’s something to keep an eye on: the people who own a big part of the company (the promoters) have decreased their holdings by -19.5%. This might be worth considering.
In a nutshell, while share prices have gone up and down, Avalon Technologies looks promising. But remember, it’s always smart to do your homework and think carefully before investing in their shares.
What did we learn?
- 1 About Avalon Tech Ltd
- 2 Q1 FY 2024 Key Points And Summary:
- 3 Avalon Tech Ltd Share Price Target 2023 To 2030
- 4 Avalon Tech Ltd Financial Condition (Last 5 Years)
- 5 FAQs
- 5.1 What Is The Share Price Target For Avalon Tech Ltd By 2023?
- 5.2 What Is The Share Price Target For Avalon Tech Ltd By 2025?
- 5.3 What Is The Share Price Target For Avalon Tech Ltd By 2030?
- 5.4 What Are The Factors Affecting Avalon’s Share Price?
- 5.5 Can Avalon’s Share Price Reach Rs.750?
- 5.6 What Is The Return On Equity (ROE) ?
- 6 Should One Invest In Avalon Tech Ltd?