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Last Updated on: 23 April, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 543896 | NSE: AVALON

Fundamental Analysis of Avalon Technologies Ltd

Basic Stock Data

Last Updated: April 23, 2024, 11:23 am

Market Cap 3,391 Cr.
Current Price 516
High / Low732/347
Stock P/E77.7
Book Value 81.2
Dividend Yield0.00 %
ROCE16.7 %
ROE16.8 %
Face Value 2.00

Data Source:

Competitors of Avalon Technologies Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Industry Average0 Cr0000%0%0%0

Quarterly Result

MonthMar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Operating Profit23.5919.5328.5920.2041.1116.2112.6116.55
OPM %11.25%9.96%11.68%8.68%15.13%6.90%6.27%7.72%
Other Income3.446.646.411.233.765.124.742.15
Profit before tax13.9314.4720.127.8230.1710.468.589.07
Tax %23.55%35.80%26.54%26.73%24.76%32.41%15.27%27.45%
Net Profit10.669.3014.775.7322.717.077.286.58
EPS in Rs667.501.662.641.013.921.081.111.00

Last Updated: April 10, 2024, 6:16 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: April 6, 2024, 9:22 am

MonthMar 2020Mar 2021Mar 2022Mar 2023TTM
Operating Profit64669811386
OPM %10%10%12%12%9%
Other Income115311416
Profit before tax1529867358
Tax %19%20%21%28%
Net Profit1223675244
EPS in Rs754.251,345.653,958.059.067.11
Dividend Payout %0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

YoY Net Profit Growth (%)91.67%191.30%-22.39%
Change in YoY Net Profit Growth (%)0.00%99.64%-213.69%


Compounded Sales Growth
10 Years:%
5 Years:%
3 Years:14%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:66%
Stock Price CAGR
10 Years:%
5 Years:%
3 Years:%
1 Year:30%
Return on Equity
10 Years:%
5 Years:%
3 Years:28%
Last Year:17%

Last Updated: April 17, 2024, 1:30 am

Balance Sheet

MonthMar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital2221213
Preference Capital36393938
Other Liabilities164175222340155
Total Liabilities4505125891,180824
Fixed Assets99104114128130
Other Assets3464084731,038568
Total Assets4505125891,180824

Reserves and Borrowings Chart

Cash Flow

MonthMar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 66616-13
Cash from Investing Activity -19-27-18-27
Cash from Financing Activity -4228-21454
Net Cash Flow47-24414

Free Cash Flow

MonthMar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow28.0027.0059.0075.00

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

Avalon Technologies Ltd Financial Efficiency Indicators

MonthMar 2020Mar 2021Mar 2022Mar 2023
Debtor Days65967780
Inventory Days138117153191
Days Payable1211027885
Cash Conversion Cycle82111152186
Working Capital Days7099116117
ROCE %18%24%17%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2023Jun 2023Sep 2023Dec 2023
No. of Shareholders1927,61255,32971,388

Shareholding Pattern Chart

No. of Shareholders

Avalon Technologies Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
HDFC Focused 30 Fund - Regular Plan13941690.8276.11
HDFC Large and Mid Cap Fund - Regular Plan8945060.348.84

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20
Basic EPS (Rs.)9.2711.304.012.21
Diluted EPS (Rs.)9.0811.304.012.21
Cash EPS (Rs.)12.455344.832431.371819.21
Book Value[Excl.RevalReserv]/Share (Rs.)92.665459.671766.31225.22
Book Value[Incl.RevalReserv]/Share (Rs.)92.665459.671766.31225.22
Revenue From Operations / Share (Rs.)163.0152643.5843235.5041952.09
PBDIT / Share (Rs.)21.946792.794481.524951.63
PBIT / Share (Rs.)18.555716.213495.493938.03
PBT / Share (Rs.)12.545412.081805.19999.67
Net Profit / Share (Rs.)9.064268.251445.33805.62
NP After MI And SOA / Share (Rs.)9.063955.101345.83754.24
PBDIT Margin (%)13.4512.9010.3611.80
PBIT Margin (%)11.3710.858.089.38
PBT Margin (%)7.6910.284.172.38
Net Profit Margin (%)5.558.103.341.92
NP After MI And SOA Margin (%)5.557.513.111.79
Return on Networth / Equity (%)9.7772.4435.8524.77
Return on Capital Employeed (%)16.6848.3141.8772.89
Return On Assets (%)4.4410.744.192.56
Long Term Debt / Equity (X)0.120.851.351.06
Total Debt / Equity (X)0.573.374.935.34
Asset Turnover Ratio (%)1.070.890.810.00
Current Ratio (X)1.891.131.000.85
Quick Ratio (X)1.300.540.610.42
Inventory Turnover Ratio (X)2.262.492.060.00
Interest Coverage Ratio (X)3.654.372.651.69
Interest Coverage Ratio (Post Tax) (X)2.512.941.861.27

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 1081.15

The stock is undervalued by 109.53% compared to the current price ₹516

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.

*Investments are subject to market risks

Strength and Weakness

  1. The company has higher reserves (247.00 cr) compared to borrowings (30.40 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (808.00 cr) and profit (52.20 cr) over the years.
  1. The stock has a low average ROCE of 14.75%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 100.50, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 132.75, 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: 5.55%
      • 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: 16.68% (Industry Average ROCE: 0%)
      • 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%: 9.77% (Industry Average ROE: 0%)
      • 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): 2.51
      • 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: 1.30
      • 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: 77.7 (Industry average Stock P/E: 0)
      • 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: 0.57
      • 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

Consumer Electronics
B-7, First Main Road, Chennai (Madras) Tamil Nadu 600045Mr.Kunhamed%20Bicha
NamePosition Held
Mr. Sareday Seshu KumarNon Executive Director
Mr. Luquman Veedu EdiyanamNon Executive Director
Mr. Bhaskar SrinivasanNon Executive Director
Mr. Byas Unnikrishnan NambisanIndependent Director
Ms. Nandita AbrahamIndependent Director
Mr. Venkataramani AnanthramakrishnanIndependent Director
Mr. Chandar PattabhiramIndependent Director

Avalon Technologies Ltd. Share Price Update

Share PriceValue
Previous Day₹520.75


What is the latest fair value of Avalon Technologies Ltd?

The latest fair value of Avalon Technologies Ltd is ₹1081.15.

What is the Market Cap of Avalon Technologies Ltd?

The Market Cap of Avalon Technologies Ltd is 3,391 Cr..

What is the current Stock Price of Avalon Technologies Ltd as on 23 April 2024?

The current stock price of Avalon Technologies Ltd as on 23 April 2024 is 516.

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

In FY 2024, the High / Low of Avalon Technologies Ltd stocks is ₹732/347.

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

The Stock P/E of Avalon Technologies Ltd is 77.7.

What is the Book Value of Avalon Technologies Ltd?

The Book Value of Avalon Technologies Ltd is 81.2.

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 16.7 %.

What is the ROE of Avalon Technologies Ltd?

The ROE of Avalon Technologies Ltd is 16.8 %.

What is the Face Value of Avalon Technologies Ltd?

The Face Value of Avalon Technologies Ltd is 2.00.

About the Author

Author Avatar

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Avalon Technologies Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE