Avalon Technologies Ltd: Share Price Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: December 17, 2024, 8:48 pm

Market Cap	5,935 Cr.
Current Price	898
High / Low	991/425
Stock P/E	206
Book Value	85.2
Dividend Yield	0.00 %
ROCE	6.22 %
ROE	4.75 %
Face Value	2.00
PEG Ratio	-2.74

Stock P/E, Current Price, and Intrinsic Value Over Time

Stock P/E Current Price Intrinsic Value

View Share Price Target for Avalon Technologies Ltd

Competitors of Avalon Technologies Ltd

Stock Name	Market Cap	Current Price	High / Low	Stock P/E	Book Value	Dividend Yield	ROCE	ROE	Face Value
Avalon Technologies Ltd	5,935 Cr.	898	991/425	206	85.2	0.00 %	6.22 %	4.75 %	2.00
Industry Average	5,935.00 Cr	898.00		206.00	85.20	0.00%	6.22%	4.75%	2.00

All Competitor Stocks of Avalon Technologies Ltd

Quarterly Result

Month	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024
Sales	209.75	196.01	244.69	232.69	271.80	235.09	200.99	214.27	216.81	199.47
Expenses	186.16	176.48	216.10	212.49	230.83	218.88	188.38	197.74	199.62	195.10
Operating Profit	23.59	19.53	28.59	20.20	40.97	16.21	12.61	16.53	17.19	4.37
OPM %	11.25%	9.96%	11.68%	8.68%	15.07%	6.90%	6.27%	7.71%	7.93%	2.19%
Other Income	3.44	6.64	6.41	1.23	3.90	5.12	4.74	2.17	2.81	4.44
Interest	8.28	7.14	10.01	8.57	9.51	5.60	3.25	3.63	3.94	4.22
Depreciation	4.82	4.56	4.87	5.04	5.19	5.27	5.52	6.00	6.11	6.61
Profit before tax	13.93	14.47	20.12	7.82	30.17	10.46	8.58	9.07	9.95	-2.02
Tax %	23.55%	35.80%	26.54%	26.73%	24.76%	32.41%	15.27%	27.45%	28.94%	14.36%
Net Profit	10.66	9.30	14.77	5.73	22.71	7.07	7.28	6.57	7.06	-2.31
EPS in Rs	667.50	1.66	2.64	1.01	3.92	1.08	1.11	1.00	1.07	-0.35

Last Updated: October 7, 2024, 8:34 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: September 23, 2024, 2:57 pm

Month	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	TTM
Sales	642	690	841	945	867	832
Expenses	577	624	743	832	805	781
Operating Profit	64	66	98	113	63	51
OPM %	10%	10%	12%	12%	7%	6%
Other Income	11	5	31	14	15	14
Interest	45	27	25	35	16	15
Depreciation	16	16	18	20	23	24
Profit before tax	15	29	86	73	38	26
Tax %	19%	20%	21%	28%	26%
Net Profit	12	23	67	52	28	19
EPS in Rs	754.25	1,345.65	3,958.05	9.06	4.26	2.83
Dividend Payout %	0%	0%	0%	0%	0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2020-2021	2021-2022	2022-2023	2023-2024
YoY Net Profit Growth (%)	91.67%	191.30%	-22.39%	-46.15%
Change in YoY Net Profit Growth (%)	0.00%	99.64%	-213.69%	-23.77%

Avalon Technologies Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 4 years from 2020-2021 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:	%
5 Years:	%
3 Years:	8%
TTM:	-4%

Compounded Profit Growth
10 Years:	%
5 Years:	%
3 Years:	7%
TTM:	-33%

Stock Price CAGR
10 Years:	%
5 Years:	%
3 Years:	%
1 Year:	66%

Return on Equity
10 Years:	%
5 Years:	%
3 Years:	14%
Last Year:	5%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 5:47 pm

Month	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Sep 2024
Equity Capital	2	2	2	12	13	13
Reserves	45	58	87	525	534	549
Borrowings	274	316	318	342	209	199
Other Liabilities	129	136	183	310	173	204
Total Liabilities	450	512	589	1,189	929	965
Fixed Assets	99	104	114	128	147	149
CWIP	3	0	2	15	20	26
Investments	2	0	0	0	75	52
Other Assets	346	408	473	1,046	687	738
Total Assets	450	512	589	1,189	929	965

Reserves and Borrowings Chart

Cash Flow

Month	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Cash from Operating Activity +	66	6	16	-13	17
Cash from Investing Activity +	-19	-27	-18	-25	-146
Cash from Financing Activity +	-42	28	-21	452	-251
Net Cash Flow	4	7	-24	414	-380

Free Cash Flow

Month	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Free Cash Flow	-210.00	-250.00	-220.00	-229.00	-146.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

Month	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Debtor Days	65	96	77	80	79
Inventory Days	138	117	153	194	209
Days Payable	121	102	78	87	64
Cash Conversion Cycle	82	111	152	187	223
Working Capital Days	70	99	116	113	154
ROCE %		18%	24%	17%	6%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024
Promoters	70.75%	51.24%	51.09%	50.98%	50.91%	50.88%
FIIs	0.00%	12.47%	9.23%	5.70%	2.43%	2.56%
DIIs	0.00%	16.58%	16.28%	17.07%	22.47%	23.19%
Public	29.25%	19.71%	23.39%	26.27%	24.19%	23.38%
No. of Shareholders	19	27,612	55,329	71,388	70,431	65,296

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund Name	No of Shares	AUM (%)	Amount Invested (Cr)	Previous Number of Shares	Previous Date	Percentage Change
HDFC Focused 30 Fund - Regular Plan	1,394,169	0.82	76.11	1,394,169	2024-12-16	0%
HDFC Large and Mid Cap Fund - Regular Plan	894,506	0.3	48.84	1,394,169	2024-12-16	-35.84%

ROCE Trend

EPS Trend

Key Financial Ratios

Month	Mar 24	Mar 23	Mar 22	Mar 21	Mar 20
FaceValue	2.00	2.00	100.00	100.00	100.00
Basic EPS (Rs.)	4.29	9.27	11.30	4.01	2.21
Diluted EPS (Rs.)	4.19	9.08	11.30	4.01	2.21
Cash EPS (Rs.)	7.74	12.45	5344.83	2431.37	1819.21
Book Value[Excl.RevalReserv]/Share (Rs.)	83.29	92.66	5459.67	1766.31	225.22
Book Value[Incl.RevalReserv]/Share (Rs.)	83.29	92.66	5459.67	1766.31	225.22
Revenue From Operations / Share (Rs.)	131.96	163.01	52643.58	43235.50	41952.09
PBDIT / Share (Rs.)	11.77	21.94	6792.79	4481.52	4951.63
PBIT / Share (Rs.)	8.29	18.55	5716.21	3495.49	3938.03
PBT / Share (Rs.)	5.79	12.54	5412.08	1805.19	999.67
Net Profit / Share (Rs.)	4.26	9.06	4268.25	1445.33	805.62
NP After MI And SOA / Share (Rs.)	4.26	9.06	3955.10	1345.83	754.24
PBDIT Margin (%)	8.92	13.45	12.90	10.36	11.80
PBIT Margin (%)	6.27	11.37	10.85	8.08	9.38
PBT Margin (%)	4.38	7.69	10.28	4.17	2.38
Net Profit Margin (%)	3.22	5.55	8.10	3.34	1.92
NP After MI And SOA Margin (%)	3.22	5.55	7.51	3.11	1.79
Return on Networth / Equity (%)	5.11	9.77	72.44	35.85	24.77
Return on Capital Employeed (%)	8.37	16.68	48.31	41.87	72.89
Return On Assets (%)	3.00	4.44	10.74	4.19	2.56
Long Term Debt / Equity (X)	0.09	0.12	0.85	1.35	1.06
Total Debt / Equity (X)	0.29	0.57	3.37	4.93	5.34
Asset Turnover Ratio (%)	0.82	1.07	0.89	0.81	0.00
Current Ratio (X)	2.53	1.89	1.13	1.00	0.85
Quick Ratio (X)	1.40	1.30	0.54	0.61	0.42
Inventory Turnover Ratio (X)	1.74	2.26	2.49	2.06	0.00
Interest Coverage Ratio (X)	4.72	3.65	4.37	2.65	1.69
Interest Coverage Ratio (Post Tax) (X)	2.71	2.51	2.94	1.86	1.27
Enterprise Value (Cr.)	3300.31	0.00	0.00	0.00	0.00
EV / Net Operating Revenue (X)	3.81	0.00	0.00	0.00	0.00
EV / EBITDA (X)	42.66	0.00	0.00	0.00	0.00
MarketCap / Net Operating Revenue (X)	3.74	0.00	0.00	0.00	0.00
Price / BV (X)	5.92	0.00	0.00	0.00	0.00
Price / Net Operating Revenue (X)	3.74	0.00	0.00	0.00	0.00
EarningsYield	0.01	0.00	0.00	0.00	0.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Avalon Technologies Ltd as of December 18, 2024 is: 850.36

Calculation basis:

Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of December 18, 2024, Avalon Technologies Ltd is Overvalued by 5.31% compared to the current share price 898.00

Intrinsic Value of Avalon Technologies Ltd as of December 18, 2024 is: 210.46

Calculation basis:

Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 18, 2024, Avalon Technologies Ltd is Overvalued by 76.56% compared to the current share price 898.00

Last 5 Year EPS CAGR: -75.25%

*Investments are subject to market risks

Strength and Weakness

Strength	Weakness
The company has higher reserves (299.67 cr) compared to borrowings (276.33 cr), indicating strong financial stability. The company has shown consistent growth in sales (802.83 cr) and profit (44.50 cr) over the years.	The stock has a low average ROCE of 13.00%, which may not be favorable. The stock has a high average Working Capital Days of 110.40, which may not be favorable. The stock has a high average Cash Conversion Cycle of 151.00, which may not be favorable.

Stock Analysis

Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Avalon Technologies Ltd:
1. Net Profit Margin: 3.22%
  - Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
2. ROCE: 8.37% (Industry Average ROCE: 6.22%)
  - ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
3. ROE%: 5.11% (Industry Average ROE: 4.75%)
  - ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
4. Interest Coverage Ratio (Post Tax): 2.71
  - Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
5. Quick Ratio: 1.4
  - Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
6. Stock P/E: 206 (Industry average Stock P/E: 206)
  - Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
7. Total Debt / Equity: 0.29
  - Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
Stock Rating:

About the Company - Qualitative Analysis

Consumer Electronics

INDUSTRY	ADDRESS	CONTACT
B-7, First Main Road, Mepz,Tambaram, Chennai (Madras) Tamil Nadu 600045	Mr.	Kunhamed%20Bicha Chairman%20&%20Managing%20Director

Management
Name	Position Held
Mr. Sareday Seshu Kumar	Non Executive Director
Mr. Luquman Veedu Ediyanam	Non Executive Director
Mr. Bhaskar Srinivasan	Non Executive Director
Mr. Byas Unnikrishnan Nambisan	Independent Director
Ms. Nandita Abraham	Independent Director
Mr. Venkataramani Ananthramakrishnan	Independent Director
Mr. Chandar Pattabhiram	Independent Director

FAQ

What is the latest intrinsic value of Avalon Technologies Ltd?

The latest intrinsic value of Avalon Technologies Ltd as on 17 December 2024 is ₹850.36, which is 5.31% lower than the current market price of ₹898.00. The stock has a market capitalization of 5,935 Cr. and recorded a high/low of ₹991/425 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹549 Cr and total liabilities of ₹965 Cr.

What is the Market Cap of Avalon Technologies Ltd?

The Market Cap of Avalon Technologies Ltd is 5,935 Cr..

What is the current Stock Price of Avalon Technologies Ltd as on 17 December 2024?

The current stock price of Avalon Technologies Ltd as on 17 December 2024 is 898.

What is the High / Low of Avalon Technologies Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Avalon Technologies Ltd stocks is 991/425.

What is the Stock P/E of Avalon Technologies Ltd?

The Stock P/E of Avalon Technologies Ltd is 206.

What is the Book Value of Avalon Technologies Ltd?

The Book Value of Avalon Technologies Ltd is 85.2.

What is the Dividend Yield of Avalon Technologies Ltd?

The Dividend Yield of Avalon Technologies Ltd is 0.00 %.

What is the ROCE of Avalon Technologies Ltd?

The ROCE of Avalon Technologies Ltd is 6.22 %.

What is the ROE of Avalon Technologies Ltd?

The ROE of Avalon Technologies Ltd is 4.75 %.

What is the Face Value of Avalon Technologies Ltd?

The Face Value of Avalon Technologies Ltd is 2.00.