Avalon Technologies Limited IPO Company Profile :
Avalon Technologies Limited is one of the leading fully integrated Electronic Manufacturing Services (“EMS”) companies with end-to-end capabilities in delivering box-build solutions in India, with a focus on high-value precision-engineered products. The company provides a full stack product and solution suite, right from printed circuit board (“PCB”) design and assembly to the manufacture of complete electronic systems (“Box Build”), to certain global original equipment manufacturers (“OEMs”), including OEMs located in the United States, China, Netherlands, and Japan.
Avalon Technologies Limited is well diversified and is present in virtually every major industry vertical, including clean energy, mobility, industrial, communication, and medical. It services a variety of industries, including the power, clean energy, railways, aerospace, and medical industries. This diversified industry presence hedges against global market and industry cycle volatilities. It has also penetrated sunrise industries such as clean energy with a presence in the solar, hydrogen, and electric vehicles industries. In FY-2022, clean energy accounted for 20.28% of its sales. It also caters to industries that require high-precision manufacturing, including aerospace, defense, and medical.
Avalon Technologies Limited IPO Financial Analysis:
| Particulars | FY-2022(in cr.) | FY-2021(in cr.) | FY-2020(in cr.) | CAGR |
| Revenue | 840.71 | 690.47 | 641.86 | 9.4% |
| Operating cost | 554.13 | 455.99 | 411.16 | |
| Gross profit | 286.58 | 234.48 | 230.7 | 7.5% |
| Gross profit margin | 34.09 | 33.96 | 35.94 | |
| Empl. Cost | 131.35 | 119.2 | 116.21 | |
| other exp | 57.68 | 49.12 | 49.92 | |
| EBITDA | 97.55 | 66.16 | 64.57 | 14.7% |
| EBITDA M | 11.60 | 9.58 | 10.06 | |
| Depreciation | 17.19 | 15.74 | 15.5 | |
| Interest | 24.84 | 26.99 | 44.95 | |
| PBT | 55.52 | 23.43 | 4.12 | 138.0% |
| Total tax | 18.26 | 5.74 | 2.96 | |
| Tax rate | 32.89 | 24.50 | 71.84 | |
| PAT | 37.26 | 17.69 | 1.16 | 217.9% |
| Dep./revenue% | 2.04 | 2.28 | 2.41 | |
| Int./revenue% | 2.95 | 3.91 | 7.00 |
Details of revenue contribution by the end-use industry for the last three Fiscals are set out below:
| Industry category | Industry vertical | FY-2022(in cr.) | FY-2021(in cr.) | FY-2020(in cr.) | Contribution% |
| Clean Energy | • Solar • Electric Vehicle • Hydrogen | 172.69 | 123.43 | 102.61 | 20.28 |
| Mobility/Transportation | • Railways • Automotive • Aerospace | 226.47 | 198.37 | 201.19 | 26.59 |
| Industrial | • Power • Automation | 255.82 | 204.24 | 182.34 | 30.04 |
| Communication | • Telecom and Satellite • Digital Infrastructure (IOT and 5G) | 61.14 | 54.66 | 40.93 | 7.18 |
| Medical | – | 65.63 | 54.47 | 52.73 | 7.71 |
| Others | • Defense • Design | 69.88 | 60.71 | 73.31 | 8.21 |
| Total | 851.63 | 695.88 | 653.11 |
Revenue from operations by service offering:
| Service offering | FY-2022(in cr.) | FY-2021(in cr.) | FY-2020(in cr.) | Contribution% |
| Box Build | 373.98 | 327.67 | 283.08 | 44.49 |
| Printed Circuit Board | 296.17 | 242.94 | 228.61 | 35.23 |
| Cables | 84.63 | 63.53 | 54.5 | 10.07 |
| Metal | 35.15 | 29.12 | 45.48 | 4.18 |
| Magnetics | 26.56 | 8.77 | 6.79 | 3.16 |
| Design | 18.46 | 15.12 | 13.97 | 2.20 |
| Plastics | 5.73 | 3.29 | 9.41 | 0.68 |
| Total | 840.68 | 690.44 | 641.84 |
Avalon Technologies Limited IPO Risk Factors:
-
Foreign exchange fluctuations may adversely affect the earnings and profitability of the company
-
The company and its customers may not be able to anticipate and adapt to technological changes which may have an adverse effect on the business, financial condition, and results of operations
-
The failure to comply with trade restrictions such as economic sanctions and export controls could negatively impact the reputation and results of operations of the company.
-
The company has had negative cash flows from operating activities in the past and may continue to have negative cash flows in the future.
Avalon Technologies Limited IPO Qualitative factors:
-
End–to–end integrated solutions, providing a “One Stop Shop” for electronics and electro-mechanical design and manufacturing services.
-
High entry barriers to business through the collective cross-industry experience, customer engagement capabilities, and leading position in the high mix flexible volume product manufacturing segment.
-
Well-diversified business leading to strong growth avenues
-
Global delivery footprint with high-quality standards and advanced manufacturing and assembly capabilities
-
Established relationships with a marquee customer base
Avalon Technologies Limited IPO FAQ
Ans. Avalon Technologies Limited IPO will comprise fresh share issue and new offer share issue. The company aims to go public to accelerate its growth and expansion plan.
Ans. The company will open for subscription on <>.
Ans. The minimum lot size that investors can subscribe to is <> shares.
Ans. The Avalon Technologies Limited IPO listing date is <>.
Ans. The minimum lot size for this upcoming IPO is <> shares.