According to reports from Moneycontrol, Prabhudas Lilladher has issued a buy rating on Avalon Technologies with a target price of ₹1,175. The broker's research report dated February 06, 2026 recommends the stock based on strong financial performance and growth prospects. The recommendation values the stock at 40x March 2028 earnings.
As reported by Moneycontrol, Avalon Technologies has demonstrated robust revenue growth of 48.7% year-on-year, primarily driven by its Mobility and Industrial segments. The Mobility segment grew by approximately 72% YoY while the Industrial segment expanded by 59% YoY. However, EBITDA margin contracted by a healthy 80 basis points YoY to 11.5%, with Mobility and Industrial segments contributing 27% and 37% respectively to the revenue.
According to the broker's report, Avalon Technologies has upward revised its guidance from 28-30% to 40% growth in topline for FY26. The company has maintained its gross margin guidance at 33-35%. The upward revision reflects strong operational performance and positive market conditions.
As reported by Moneycontrol, the company is well-positioned for long-term growth with recent semiconductor equipment wins aligning with the government's ISM 2.0 initiative. Additionally, the reduction of US tariffs from 50% to 18% enhances India's competitiveness and strengthens the company's US export business. The broker estimates Revenue/EBITDA/PAT CAGR of 27.7%/34.8%/36.5% over FY26-28E with EBITDA margin expansion of approximately 120 basis points.
According to the broker's analysis, Prabhudas Lilladher has revised FY27/FY28 EPS estimates upward by 7.2%/5.8% respectively. The broker maintains its 'BUY' rating with the target price of ₹1,175 based on healthy performance in 9MFY26, reflecting confidence in the company's growth trajectory and market positioning.
