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AVALON: Richer Future Earnings Multiple May Pressure Returns Ahead

Geopolitical Instability And Rising Costs Will Erode Margins

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AVALON
AnalystLowTarget
Not Invested
Published 23 Jul 2025

Update shared on 13 Dec 2025

Fair value Increased 19%
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AnalystLowTarget's Fair Value
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1Y
-11.8%
7D
0.5%

Narrative Update on Avalon Technologies

Analysts have raised their average price target on Avalon Technologies to $650 from roughly $547, citing slightly higher projected revenue growth, modestly improved profit margins, and a richer future earnings multiple despite a marginal uptick in the discount rate.

What's in the News

  • A board meeting is scheduled for November 5, 2025 at 18:00 IST to review and approve the unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025, along with the statutory auditor's limited review report (company filing).

Valuation Changes

  • Fair Value Estimate has risen significantly from ₹546.87 to ₹650.00 per share, reflecting a notably more optimistic outlook on Avalon's intrinsic value.
  • Discount Rate has edged up slightly from 14.92 percent to 15.21 percent, implying a modestly higher required return and risk premium.
  • Revenue Growth has risen slightly from 19.75 percent to 20.75 percent, indicating marginally stronger expectations for top line expansion.
  • Net Profit Margin has improved slightly from 7.35 percent to 7.48 percent, signaling a small anticipated gain in profitability.
  • Future P/E has increased moderately from 36.60x to 38.62x, suggesting a richer valuation multiple on projected earnings.

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Disclaimer

AnalystLowTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystLowTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystLowTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.