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Avalon Technologies Limited (AVALON) Fair Value & Analysis

Technology · IN · Market cap ₹117B

AT Avalon Technologies Limited AVALON · NSE
Price₹1,964
Fair Value₹316.07
Upside-83.9%
Quality56/100
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Expensive Growth
Thin margins · 6.9% net margin
Low debt · negative free cash flow
Mixed vs. peers (7/12)
Moderate moat 50/100
Evidence: High Range ₹131.27 – ₹400.39 Share as image

Fair value as of: Aug 2, 2026

From 17 valuation models · updated 11 days ago

Share price +14.1% over the past month.

A solid business, but screening 84% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (₹400.39). The favourable scenario is already priced in.
  • The model range is unusually wide (₹131.27 to ₹400.39). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid but not exceptional quality (56/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (3 years)

₹1,965 ₹356.15 Fair Value ₹316.07 Apr 2023 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 2, 2026.

How to read this chart

40‑month range ₹356.15 – ₹1,965 · fair‑value band ₹131.27 – ₹400.39 · the ₹1,964 price screens above the ₹316.07 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 2, 2026.

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Analysis

Avalon Technologies Limited (AVALON) currently trades at ₹1,964, while our model-based Fair Value estimate is ₹316.07, implying the stock looks roughly 83.9% overvalued today. The Quality Score stands at 56/100 (solid quality), in the Technology sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Avalon Technologies Limited generated revenue of ₹16.3B at a net margin of 6.9%. Revenue grew 40.0% year over year. It earns a return on equity of 16.9%. Net debt stands at ₹1.4B. Fundamentals as of Aug 2, 2026

Our scenario range runs from ₹131.27 (bear case) to ₹400.39 (bull case); at ₹1,964, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades near its 52-week high and 153% above its 52-week low, currently above its 200-day average. For context, the median of 10 Technology peers we cover trades at -73% fair-value upside, at -84%, AVALON screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Note: the current price implies far more future growth than the conservative anchors of our models allow (base growth is deliberately capped, we do not regard such extreme rates as sustainable). Our models are not designed for expectations this high; that is why the individual models scatter extremely (₹1.33 to ₹801.68). Read the values as a conservative anchor, not as a price target.
Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income ₹112.87 ₹157.96 ₹617.10 76
ROIC Compounder ₹184.35 ₹270.43 ₹332.32 72
Gordon GGM ₹0.7600 ₹1.57 ₹2.49 70
All 17 models by family
DCF Models
Owner Earnings ₹227.28 ₹505.73 ₹1,090 31
Earnings-Based
Graham-Dodd ₹114.95 ₹801.68 ₹1,125 54
Lynch FV ₹273.59 ₹390.85 ₹508.10 50
PEG = 1.0 ₹273.59 ₹390.85 ₹508.10 46
EPV ₹150.17 ₹173.70 ₹194.29 59
Dividend Discount
Gordon GGM ₹0.7600 ₹1.57 ₹2.49 70
DDM Multi-Stage ₹0.7600 ₹1.33 ₹1.65 61
Multiples
P/E Multiple ₹253.58 ₹338.10 ₹422.63 63
P/S Multiple ₹215.54 ₹287.39 ₹359.23 58
P/B Multiple ₹215.54 ₹287.39 ₹359.23 55
EV/EBIT ₹291.35 ₹385.47 ₹479.58 53
EV/EBITDA ₹261.95 ₹346.27 ₹430.58 54
EV/Revenue ₹199.33 ₹280.89 ₹362.46 43
Asset-Based
NCAV (Graham) ₹54.01 ₹72.37 ₹108.02 50
Economic Profit
Residual Income ₹112.87 ₹157.96 ₹617.10 76
ROIC Compounder ₹184.35 ₹270.43 ₹332.32 72
Growth Earnings
Growth-Adj P/E ₹351.85 ₹502.64 ₹653.43 68

Widest divergence: DCF Models (₹505.73) versus Dividend Discount (₹1.33). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) ₹16.3B
Revenue growth (YoY) +40.0%
Net margin 6.9%
Return on equity 16.9%
Free cash flow −₹69.0M FY2026
P/E ratio 104.4
More key figures
Operating margin 10.1%
EPS (TTM) ₹16.80
EPS growth (YoY) +69.0%
Net debt ₹1.4B FY2026

Figures from reported company fundamentals · as of Aug 2, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 56/100

Of which business quality 53 · Market factors (momentum, volatility) 87

Profitability 57
Margins and returns on capital today
Quality Growth 66
Are margins and returns improving?
Cashflow 10
Earnings quality: real cash, not paper profit
Fin. Strength 70
Balance sheet, leverage, solvency risk
Investment 77
Disciplined investing over empire-building
Low Volatility 57
Calm price path (market factor)
Momentum 100
Price trend over the last 3–12 months (market factor)
52W Momentum 100
Distance to the 52-week high (market factor)
Net Issuance 54
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Avalon Technologies Limited, together with its subsidiaries, provides integrated electronic manufacturing services in India, the United States, and internationally.

Full company description

Avalon Technologies Limited, together with its subsidiaries, provides integrated electronic manufacturing services in India, the United States, and internationally. Its capabilities include printed circuit board assemblies; custom cables and wire harness assemblies; magnetic assemblies; sheet metal fabrication and assemblies, as well as contract services; aerospace sheet metal fabrication; precision injection molding for plastic parts; new product introduction, including prototype building services; design for manufacturing implementation; product engineering; volume production; life cycle management; system integration; machining; and supply chain and logistics. The company also offers electro-mechanical systems and racks; box builds for railway signaling systems; machined components for aerospace, such as commercial engines, seating, and cargo systems; precision-machined components for specialized locomotive braking systems; and magnetic components, including transformers, inductors, and chokes. It serves the clean energy, mobility, communication, and industrial sectors. Avalon Technologies Limited was founded in 1995 and is based in Chennai, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Avalon Technologies Limited reported revenue of ₹16.0B in FY2026 versus ₹8.4B in FY2022, a compound +17.6%/yr. Reported net income was ₹1.1B in FY2026, compounding +15.6%/yr from FY2022.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2026)
₹16.0B
Latest YoY
+46.0%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+19.3%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+18.4%
Avg. growth/yr (6Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+16.5%
Revenue +17.6%/yr
FY22 ₹8.4B
FY23 ₹9.4B
FY24 ₹8.7B
FY25 ₹11.0B
FY26 ₹16.0B
Net income +15.6%/yr
FY22 ₹632M
FY23 ₹525M
FY24 ₹280M
FY25 ₹634M
FY26 ₹1.1B

AVALON screens 84% overvalued. Compare with Delta Electronics, Inc →

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Cite: Fair Value Calculator (2026). "Avalon Technologies Limited Fair Value". https://www.fairvalue-calculator.com/stock/AVALON

Peer Group

Electronic Components · 630 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 56 · Above median
Fair Value upside −84% · Bottom 25%
Return on equity (TTM) 17% · Top 25%
Return on assets 9% · Top 25%
Net margin (TTM) 7% · Above median
Operating margin (TTM) 10% · Above median
Revenue growth 40% · Top 25%
Debt / equity 0.02× · Lower than median

Valuation Multiples vs Electronic Components median · lower = cheaper

P/E (TTM) 104.4× · Pricier than 75% of peers
P/B 16.24× · Pricier than 75% of peers
P/S (TTM) 7.18× · Pricier than 75% of peers
EV/EBITDA 57.6× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 0
FUTURE 100 · sector 32
PAST 68 · sector 24
HEALTH 99 · sector 95
DIVIDEND 0 · sector 24

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Electronic Components stocks, each showing price versus our Fair Value estimate (as of Aug 2, 2026).

Stock Price Fair Value vs Fair Value
Delta Electronics, Inc 2308 1,880 TWD 515.23 TWD -73%
Hon Hai Precision Industry Co 2317 242.50 TWD 270.47 TWD +12%
Luxshare Precision Industry Co 002475 ¥62.14 ¥38.44 -38%
Samsung Electro-Mechanics Co 009150 1,260,000 KRW 166,421 KRW -87%
Elite Material Co 2383 4,990 TWD 714.36 TWD -86%
Yageo Corporation 2327 699.00 TWD 216.55 TWD -69%
Shengyi Technology Co 600183 ¥132.29 ¥27.45 -79%
Shennan Circuits Co 002916 ¥364.00 ¥93.50 -74%
Victory Giant Technology (HuiZhou) Co 2476 HK$253.80 HK$80.50 -68%
Wus Printed Circuit (Kunshan) Co 002463 ¥127.80 ¥31.95 -75%

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Frequently asked questions

Is Avalon Technologies Limited (AVALON) overvalued or undervalued?
As of Aug 2, 2026, our model estimates a fair value of ₹316.07 versus a price of ₹1,964, about −84% (overvalued).
What is the fair value of AVALON?
Our model-based fair value for Avalon Technologies Limited is ₹316.07 (as of Aug 2, 2026), built from audited fundamentals. The current price is ₹1,964.
What is the quality score of AVALON?
Avalon Technologies Limited has a Quality Score of 56/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Avalon Technologies Limited (AVALON)?
Avalon Technologies Limited reported trailing-twelve-month revenue of about ₹16.3B (latest available figure, as of Aug 2, 2026).
What is the net profit margin of AVALON?
The net profit margin of Avalon Technologies Limited is about 6.9%, meaning it keeps roughly 6.9% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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