Avalon Technologies Limited Just Beat EPS By 28%: Here's What Analysts Think Will Happen Next

It's been a good week for Avalon Technologies Limited (NSE:AVALON) shareholders, because the company has just released its latest third-quarter results, and the shares gained 7.2% to ₹708. It looks like a credible result overall - although revenues of ₹2.8b were what the analysts expected, Avalon Technologies surprised by delivering a (statutory) profit of ₹3.58 per share, an impressive 28% above what was forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Avalon Technologies

Following the latest results, Avalon Technologies' ten analysts are now forecasting revenues of ₹13.6b in 2026. This would be a substantial 40% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 111% to ₹14.77. In the lead-up to this report, the analysts had been modelling revenues of ₹13.8b and earnings per share (EPS) of ₹14.36 in 2026. So the consensus seems to have become somewhat more optimistic on Avalon Technologies' earnings potential following these results.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 8.2% to ₹789. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Avalon Technologies at ₹1,140 per share, while the most bearish prices it at ₹410. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Avalon Technologies' growth to accelerate, with the forecast 31% annualised growth to the end of 2026 ranking favourably alongside historical growth of 6.9% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 25% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Avalon Technologies to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Avalon Technologies following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Avalon Technologies going out to 2027, and you can see them free on our platform here..

You still need to take note of risks, for example - Avalon Technologies has 2 warning signs we think you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.