Avalon Tech jumps 10% to 52-week high on Q4; Antique cautious on valuations

Despite the strong Q4FY26 performance, Antique Stock Broking retained its 'Hold' rating on Avalon Technologies, primarily due to valuation concerns

Avalon Technologies Share Price: Shares of Electronic Manufacturing Services (EMS) player Avalon Technologies surged in an otherwise weak market on Friday, May 8, after the company announced its financial results for the fourth quarter (Q4FY26) and the full year FY26.

 

Following the development, Avalon Technologies share price climbed as much as 9.83 per cent to hit a 52-week high of ₹1,379 during intra-day trade on Friday.

 

Though the stock pared some gains thereafter, it continued to witness strong buying interest from investors. At 9:40 AM, Avalon Technologies shares were trading at ₹1,376.90 apiece, up 9.67 per cent from the previous close of ₹1,255.50 on the NSE. At the same time, the NSE Nifty50 index was trading at 24,189, down 137 points or 0.57 per cent.

 

 

So far in Friday’s session, a combined total of nearly 8 million equity shares of Avalon Technologies, worth around ₹110 crore, had changed hands on the NSE and BSE. The company’s market capitalisation stood at ₹9,163.66 crore on the NSE.

Avalon Technologies Q4 results

The company’s profit after tax (PAT) jumped 69.5 per cent year-on-year (Y-o-Y) to ₹41 crore in Q4FY26 from ₹24 crore reported in the corresponding quarter of the previous fiscal year (Q4FY25).

 

Avalon Technologies' revenue from operations rose 40 per cent Y-o-Y to ₹480 crore during the quarter under review from ₹343 crore reported in Q4FY25.

 

The company’s earnings before interest, depreciation and amortisation (Ebitda) increased 37.5 per cent Y-o-Y to ₹57 crore from ₹41 crore reported in the same quarter last fiscal year.

 

For FY26, the company reported a profit of ₹113 crore, up 78 per cent from ₹63 crore reported in FY25. The company's revenue from operations rose 46 per cent to ₹1,603 crore in FY26 from ₹1,098 crore reported in FY25. 

Antique retains ‘Hold’ rating

Despite the strong Q4FY26 performance, brokerage house Antique Stock Broking retained its ‘Hold’ rating on Avalon Technologies with a revised target price of ₹1,213, compared with ₹922 earlier, primarily due to valuation concerns. The revised target price is nearly 12 per cent below the current market price.

 

The brokerage noted that Avalon delivered a robust quarter, with revenue, Ebitda, and PAT all coming in ahead of estimates. It also highlighted the company’s healthy order book of ₹2,190 crore, up 25 per cent Y-o-Y, which provides strong revenue visibility. In addition, Antique said Avalon’s entry into the semiconductor equipment manufacturing space and its target of doubling revenue by FY29 could support long-term growth.

 

“We raise our FY27/FY28 EPS estimates by 7 per cent/18 per cent to reflect the improved growth trajectory. We have also increased the exit multiple to 45x FY28E EPS (earlier 40x FY28E EPS). However, due to steep valuation, we retain 'Hold' rating on the stock with a revised target price of ₹1,213 (earlier ₹922),” said the brokerage in its report.

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