What Sparked a 19% Surge in Avalon Technologies’ Shares
Avalon Technologies Ltd. saw its shares soar by over 19% on Thursday, November 7, following impressive quarterly earnings that surpassed market expectations on multiple fronts.
By midday, Avalon’s stock was trading 15.31% higher at ₹680, with an overall increase of 25% in the past month.
Key Financial Highlights
The company reported strong revenue, EBITDA margin, and profit after tax figures, all exceeding analysts’ expectations. Domestic revenue growth is expected to further support sales momentum.
- Operating Revenue: Increased by 37% to ₹275 crore, up from ₹201 crore.
- EBITDA: Rose to ₹30.1 crore from ₹12.5 crore, reflecting a 1.4-fold increase.
- EBITDA Margin: Improved to 10.9%, up from 6.2%, marking a 470 basis-point increase and surpassing the forecasted 6.4%.
- Net Profit: Jumped to ₹17.4 crore from ₹7.2 crore, also a 1.4-fold rise.
Operational and Strategic Updates
The company’s order book grew by 19.4% year-on-year to ₹1,485 crore, indicating strong demand. Additionally, net working capital days were reduced from 161 days in March 2024 to 134 days in September 2024.
Avalon also recently launched a new plant focused on exports, while work on Phase 2 of its domestic brownfield expansion is scheduled to begin early next year. The company appointed Suresh Veerappan as its new CFO, leveraging his 2.5 years of experience in Business Finance and Investor Relations.
Ownership and Market Presence
Promoters currently hold a 50.70% stake in Avalon. The company operates 12 manufacturing facilities, with 10 in India and two in the United States. Known for high-value precision engineering, Avalon’s services span from PCB design to the assembly of complete electronic systems, offering a comprehensive suite of manufacturing solutions.
