Avalon Technologies shares up 20% today; stock exchanges seek clarification

Shares of integrated Electronic Manufacturing Services (EMS) company Avalon Technologies Ltd soared 20 per cent in Friday's trade, in addition to a similar move in the previous session, prompting stock exchanges to seek clarification from the company with reference to the sharp movement in volumes.

On Friday, the stock climbed 20 per cent to hit a 52-week high of Rs 849.45. This is in addition to 20 per cent rally on the counter in the previous session. Avalon Technologies shares are now up 43.05 per cent in a week.

The company earlier this week reported a 140 per cent surge in year-on-year net profit at Rs 17.5 crore compared with Rs 7.30 crore in the same quarter last year. Sales was up 36.80 per cent for the quarter at Rs 275 crore compared with Rs 201 crore in teh year-ago quarter.

Ebitda for the quarter came in at Rs 30.10 crore, up 139.60 per cent YoY over Rs 12.60 crore in the same quarter last year. Ebitda margin came in at 11 per cent against 6.3 per cent YoY, up 470 basis points.

The company said its order book for the September quarter grew 19.4 per cent YoY. Net working Capital days improved by 27 days i.e. from 161 days in March 2024 to 134 days in September 2024.

Avalon Technologies said the new plant for exports has started operations and that the brownfield expansion for domestic demand Phase 2 work is estimated to commence early next year.

Besides, it updated that Suresh Veerappan, who led Business finance and Investor Relations over last 2.5 years, is appointed as the new CFO.

Incorporated in 1999, Avalon Technologies has end-to-end capabilities in delivering box-build solutions in India, focusing on high-value precision-engineered products. It has a dozen manufacturing units located across the US and India offering a variety of solutions and services to its clients.

Its scope of work requires complex designing, engineering, component procurement and manufacturing which creates long lead times and consequently entry barriers.