Avalon Technologies Limited is India’s leading fully integrated electronics manufacturing services company. Scheduled for an IPO to start offering on March 3rd Closed on April and 6thth April 2023. This article provides Avalon Technologies IPO details, IPO date, financials and review.
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About Avalon Technologies Limited
They are one of the fully integrated Electronic Manufacturing Services (EMS) companies with end-to-end operations to provide box build solutions in India in terms of FY22 revenue (Source: F&S Report) . product.
Full-stack products from printed circuit board (PCB) design and assembly (Box Build) for complete electronic system manufacturing to select global original equipment manufacturers (OEMs) through a unique global distribution model and solution suites. Including his OEMs located in the US, China, Holland and Japan.
They believe that through end-to-end operations, customers can realize tangible benefits such as reduced manufacturing costs, improved supply chain management, and reduced inventory obsolescence. Its capabilities include PCB design and assembly, cable assembly and wire harnesses, sheet metal fabrication and machining, magnets, injection molded plastics, and end-to-end box builds for electronic systems. The company specializes in manufacturing and providing design support for critical integrated assemblies, subassemblies, components and enclosures for multiple industries.
The end-use industries they serve include established long product lifecycle industries such as industrial, mobility and medical devices, and high growth sunrise industries such as solar, electric vehicles, hydrogen in the clean energy sector, and digital infrastructure. are mixed. in the communications department.
Avalon Technologies IPO Issue Details
Click here for details of the IPO project.
| IPO start date | April 3, 23 |
| IPO closing date | April 6, 23 |
| IPO Listing Date | April 18, 23 |
| Kind of problem | Book Build Issue IPO |
| face value | Rs 2 per share |
| IPO price range | Rs 415 to Rs 436 per share |
| lot size | 34 shares |
| Minimum order quantity | 34 shares |
| list at | BSE and NSE |
| total issue size | 86.5 billion rupees |
| New publication | rupee 320 million |
| OFS | 54.5 billion rupees |
| QIB Shares Offered | 75% or more of the offer |
| Offer of NII/HNI shares | 15% or less of the offer |
| Retail Stock Offered | 10% or less of the offer |
Avalon Technologies IPO – Company Finances
| Fiscal year end/end (Amt in Crores) | ||||
| detail | 2020 | 21st year | 22nd year | November 23rd |
|---|---|---|---|---|
| Total assets | 449.7 | 512.5 | 588.0 | – |
| Earnings | 653.2 | 695.9 | 851.7 | 596.9 |
| Profit after tax | 12.3 | 23.1 | 68.2 | 34.1 |
| Profit % | 1.89% | 3.32% | 8.00% | 5.71% |
Avalon Technologies IPO Valuation
Its IPO price range is Rs 415 to Rs 436.
Taking into account last year’s 2022 EPS of Rs 7.36, the P/E ratio is 59x.
Considering the weighted average EPS of Rs 11.3 over the last three years, the PER is 38x.
Even when annualized to account for the eight-month EPS ending November 22, the P/E ratio is 48x.
Publicly traded companies like Kaynes Technology trade at 106x P/E (highest) and Syrma SGS trades at 50x P/E (lowest) with an industry average P/E of 76x. So the IPO price range at 38x to 59x P/E is fully priced.
Positive Factors for Investing in Avalon Technologies IPO
We are one of the leading integrated electronic manufacturing services company in India. An end-to-end integrated solutions company providing a one-stop-shop for electronics and electromechanical design and manufacturing services.
We are entering a business with high barriers to entry.
The company has diversified its business and achieved strong growth. The company’s revenue and profit margins have improved significantly over the last few years.
Risks or Downsides of Investing in the Avalon Technologies IPO
The company serves certain markets where customer preferences may change in the future, which could affect the company’s financial performance.
The company relies on a limited number of customers and the loss of any one of these customers can affect the company’s bottom line.
Investors can read the full risk factor from the company’s RHP.
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Should you invest in the Avalon Technologies IPO?
The company is one of India’s leading integrated electronic manufacturing services companies with strong growth in its diversified businesses. The company’s revenue and profit margins have improved significantly over the last few years.
On the other hand, the company has a limited number of customers. Its services serve specific segments where customer preferences may change in the future.
The IPO price is also fully priced.
Risky investors can invest in this IPO with a medium- to long-term view.
Avalon Technologies IPO review and analysis based on RHP filings on SEBI website
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Suresh KP is the founder of Myinvestmentideas. He is his NISM Certified – Investment Advisor and NISM Certified – Research Analyst. He has been analyzing financial markets for the past 20 years.
