The shares of the leading electronic manufacturer rose 4 percent to Rs 565.45 per share after the company entered into an agreement for the manufacturing of indigenous servers under the ‘RUDRA’ program for the development of supercomputers in India.
Avalon Technologies Limited is a small-cap stock, with a market capitalization of Rs 3,675 crore. At 12:45 p.m, the company shares were quoted at Rs 561 per share, up 3.48 percent from the previous close price.
Avalon Technologies has entered into an agreement with C-DAC (Centre for Development of Advanced Computing), for the development of High-performance computing systems in India.
C-DAC is a premier R&D organization of the Ministry of Electronics and Information Technology (MeitY).
This partnership will enhance the development of indigenous manufacturing capability of High-Performance Computing (HPC) systems as part of the ‘RUDRA’ program, which aims at designing and manufacturing supercomputers in India. The company said in its exchange filing.
Avalon Technologies has been working with C-DAC, to provide services in strategic design and manufacturing, including PCB design and analysis, prototype PCB assemblies, cables, and sheet metal chassis, since 2021.
The company’s revenues have decreased by 18 percent year on year from Rs 244.69 crore in Q2FY23 to Rs 201 crore in Q2FY24, while the net profit has declined by percent from Rs 14.77 crore to Rs 7.28 crore.
In Q2FY24, the company accounted for 53 percent of its revenue from the USA and the rest of its revenue from India. Its shares have gained 9 percent in the last month and 47 percent in a year.
Avalon Technologies Limited is a leading fully integrated Electronic Manufacturing Services (“EMS”) company with end-to-end Electronic Manufacturing Services (“EMS”) company with end-to-end capabilities in delivering box-build solutions, focusing on high-value precision-engineered products.
The company is in the business of designing and manufacturing complete electronic systems for global and domestic OEM clients.
Avalon has secured new contracts and letters of intent worth Rs 750 crores, with production set to commence in Q4 FY24. The company has also secured a large contract with an Indian EV manufacturer for manufacturing chargers and data transmission systems.
The company has also secured contracts in various industries including video surveillance systems, grid flexibility systems, heat transfer products, medical equipment, residential ventilation solutions, and processing systems.
The company receives the majority of its revenue from the Industrial sector which accounts for 29 percent, followed by 25 percent of revenue from the green energy sector, and 21 percent of revenue from the Mobility / Transportation sector.
Written by Omkar Chitnis
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