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Avalon Technologies Rallies 7% as Nomura Raises Target
Avalon Technologies makes electronic products for other companies.
Its shares rose 7% after Nomura said the company could grow strongly.
Nomura increased its expected share price and kept its Buy recommendation.
A possible partnership with Zollner could help Avalon expand in Europe.
The partnership may also bring business from healthcare, life sciences, and testing companies.
Avalon recently reported much higher sales and profits for the first quarter.
Its order backlog also increased.
The stock has risen 168% this year.
However, some brokerages think the shares may already be expensive.
Avalon Technologies shares rose 7% to ₹2,352 on Monday, 7 September, after Nomura maintained its Buy rating and raised its target price to ₹2,767.32.
Nomura said Avalon’s proposed joint venture with Zollner could expand its European presence and customer base in advanced electronics manufacturing.
The proposed venture may require a $30–50 million investment; Nomura estimates a $40 million investment could lift FY29 earnings per share by 21%.
Avalon’s Q1 revenue rose 50% year over year, while EBITDA increased 94% and profit after tax climbed 145% to ₹34.9 crore.
The stock has gained 168% so far this year, although JM Financial and Prabhudas Lilladher expressed caution over elevated valuations.
- Who
- Avalon Technologies, Nomura, Zollner, JM Financial, and Prabhudas Lilladher.
- What
- Avalon Technologies shares rose 7% after Nomura raised its target price and highlighted the company’s proposed joint venture with Zollner and strong quarterly results.
- Where
- The proposed partnership is expected to expand Avalon’s presence in Europe, while the company has manufacturing operations in India and the United States.
- When
- Monday, 7 September; the article also reports performance for the June quarter and gains so far in 2026.
- Why
- Investors responded to Nomura’s bullish outlook, the proposed European joint venture, and Avalon’s strong Q1 results.
Bullish outlook
Valuation concerns
Growth from the Zollner partnership
Bullish outlook
Nomura expects the proposed joint venture to strengthen Avalon’s European presence, broaden its global customer base, and create opportunities in healthcare, life sciences, and test and measurement.
Valuation concerns
The partnership would require substantial investment, estimated at $30–50 million, and its potential benefits have not yet been realized.
Share-price potential
Bullish outlook
Nomura retained its Buy rating and raised its target to ₹2,767.32, implying nearly 26% upside from Friday’s close.
Valuation concerns
JM Financial cut its target to ₹1,640, while Prabhudas Lilladher retained Reduce and cited elevated valuations, despite raising its target to ₹1,470.
Key facts
- Share price
- ₹2,352 after a 7% gain on Monday, 7 September
- Nomura target
- ₹2,767.32, raised from ₹2,211.24
- Year-to-date gain
- 168% in 2026
- Q1 revenue growth
- 50% year over year
- Q1 profit after tax
- ₹34.9 crore, up 145% year over year
- Order backlog
- ₹2,200 crore, up 23% year over year
- Proposed venture investment
- Estimated at $30–50 million
Sources
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