Avalon Technologies shares hit record high on MOFSL estimates 

Shares of Avalon Technologies Ltd rose 15% in three days after brokerage MOFSL assigned a 27% upside to the stock of the electrical equipment provider.  In fact, in the current session, Avalon Technologies stock alone gained 11% to a record high of Rs 2479. Market cap of the firm rose to Rs 16,317 crore. The stock zoomed 159% in six months and rose 177% this year. Avalon Technologies stock zoomed 315% in two years.

The RSI of the stock stood at 54.6, signalling the stock is neither oversold nor overbought on charts.

The brokerage estimates a CAGR of 40 per cent in revenue, 47 per cent in EBITDA and 56 per cent in adjusted PAT over FY26 to FY29. The high projections led to positive sentiment around the stock.

Avalon Technologies stock has gained 212% from the 52 week low of Rs 778. The stock fell to a 52 week low of January 29, 2026.

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Motilal Oswal Financial Services (MOFSL) said Avalon Technologies is well placed to sustain strong growth, supported by a healthy order book and increasing opportunities across energy storage systems, aerospace, railways and satellite communications.

The brokerage noted that Avalon's order book increased 25% year-on-year to Rs 2,200 crore in FY26. The order book also includes long-term contracts, providing greater revenue visibility, it said. MOFSL expects the company to deliver a revenue CAGR of 40%, EBITDA CAGR of 47% and adjusted profit after tax CAGR of 56% between FY26 and FY29.

According to the brokerage, Avalon's foray into semiconductor equipment represents a strategic shift towards a higher-value and more complex business segment. The opportunity is being driven by rising investments in artificial intelligence, high-bandwidth memory (HBM), graphics processing units (GPUs) and advanced semiconductor packaging.

Following nearly two years of development work, Avalon has commenced commercial production of electronic power boxes for a leading global wafer fabrication equipment manufacturer. MOFSL said the company plans to establish its semiconductor equipment business as a standalone vertical over the next 18-24 months, while also exploring opportunities to supply additional components used in semiconductor equipment.

The brokerage believes the semiconductor business could become a meaningful contributor to Avalon's revenue and profitability over the long term. It cited the company's dedicated infrastructure in Chennai, growing localisation and outsourcing trends, and policy support under the India Semiconductor Mission 2.0 (ISM 2.0) as key factors supporting the opportunity.

Meanwhile, Avalon's clean-energy business has recorded a 21% CAGR in revenue between FY21 and FY26, MOFSL said. Battery energy storage systems (BESS) have emerged as an important growth driver for the segment, particularly in the US market, where demand for energy-storage solutions continues to expand.

Avalon Technologies Ltd. is a provider of integrated Electronics Manufacturing Services (EMS), specializing in high-complexity products and complete box-build solutions. The company operates within a specialized niche of the EMS industry, focusing on design-for-manufacturing and assembly for a diverse global customer base.