Motilal Oswal has maintained its buy rating on Avalon Technologies with a target price of ₹2,740 in its latest research update. According to the brokerage's analysis, the company is strategically shifting toward higher-value, engineering-intensive EMS segments, with semiconductor equipment and battery energy storage systems (BESS) emerging as key growth drivers. The recommendation is based on AVALON's healthy order book and positioning to deliver sustained growth across ESS, aerospace, rail, and satellite communication sectors.
The semiconductor opportunity is supported by rising outsourcing by global OEMs, growing demand for AI/high bandwidth memory (HBM), advanced packaging, and ISM 2.0-led localization. Meanwhile, the energy storage systems (ESS) opportunity is underpinned by structural growth in BESS, renewable integration, and grid modernization. As reported by Motilal Oswal, these strategic shifts position AVALON well for sustained growth across multiple high-value segments in the engineering services market.
Motilal Oswal estimates AVALON to achieve a CAGR of 40%/47%/56% in revenue/EBITDA/Adjusted PAT over FY26-FY29. The target price of ₹2,740 is based on 50x September 2028E EPS. According to the brokerage's analysis, these projections reflect the company's strong fundamentals and growth trajectory in the engineering services sector, particularly in the semiconductor and energy storage segments.
