Chart Of Week- Electronic Manufacturing Services Company

#NSE0034 -Chart of Week- Avalon Technologies Ltd

Avalon Technologies Limited, founded in 1999, is a prominent player in the Electronic Manufacturing Services (EMS) sector.

Here’s a breakdown of their product categories:

1. PCB Design and Assembly: Avalon specializes in the design and assembly of printed circuit boards (PCBs), which are crucial components in electronic devices. This includes designing the layout of circuitry and components on the board, as well as soldering and assembly processes.
2. Metals/Sheet Metal Fabrication: Avalon provides services for the fabrication of metals and sheet metal components. This may include processes such as cutting, bending, welding, and finishing to create custom metal parts and enclosures for electronic products.
3. Cable Assembly and Wire Harnesses: Avalon offers cable assembly and wire harness services, which involve the production and assembly of cables, wires, connectors, and other components into complete wiring systems. These harnesses are essential for connecting various electronic components within devices.
4. Transformers: Avalon manufactures transformers, which are electrical devices that transfer electrical energy between two or more circuits through electromagnetic induction. Transformers are integral components in many electronic devices, converting voltage levels to meet specific requirements.
5. Chokes and Inductors: Avalon produces chokes and inductors, which are passive electronic components used to filter or block alternating current (AC) while allowing direct current (DC) to pass through. These components are often used in power supplies and signal filtering circuits.
6. Injection Molded Plastics: Avalon offers injection molding services for the production of plastic components. Injection molding is a manufacturing process where molten plastic material is injected into a mold cavity, cooled, and solidified to create custom plastic parts used in electronic products.

Avalon Technologies Limited operates 14 manufacturing units strategically located across the United States and India. Avalon holds a unique position as the sole Indian Electronic Manufacturing Services (EMS) company with fully operational manufacturing facilities in the United States.

Avalon Technologies Limited serves a diverse range of industries, catering to both long product lifecycle sectors and high-growth industries. Here’s an overview of the industries they specialize in:

1. Long Product Lifecycles Industries:
   • Industrial: Avalon provides electronic manufacturing services for industrial applications, which may include automation, control systems, instrumentation, and machinery.
   • Mobility: Avalon caters to the mobility sector, which encompasses transportation technologies such as automotive electronics, aerospace, rail, and marine applications.
   • Medical Devices: Avalon offers electronic manufacturing solutions for medical devices and equipment, ensuring compliance with regulatory standards and precision engineering for critical healthcare applications.
2. High-Growth Industries:
   • Solar: Avalon supports the solar energy sector by providing electronic manufacturing services for solar panels, inverters, energy storage systems, and related components.
   • Electric Vehicles (EVs): Avalon contributes to the electric vehicle industry by manufacturing electronic components and systems for EVs, including battery management systems, charging infrastructure, and vehicle control units.
   • Hydrogen in Clean Energy: Avalon participates in the clean energy transition by supporting hydrogen-related technologies, such as fuel cells, electrolyzes, hydrogen storage systems, and hydrogen fueling infrastructure.
   • Digital Infrastructure in Communications: Avalon serves the communications sector by providing electronic manufacturing solutions for digital infrastructure, including telecommunications equipment, networking devices, data centers, and fiber optic systems.

Avalon Technologies Limited holds a significant role as a strategic manufacturing partner for C-DAC (Centre for Development of Advanced Computing), a premier research and development organization under the Ministry of Electronics and Information Technology (MeitY). As part of this partnership, Avalon contributes its expertise in electronic manufacturing services to support C-DAC’s initiatives, including the prestigious ‘RUDRA’ program. The ‘RUDRA’ program, initiated by C-DAC, aims to design and manufacture supercomputers in India.

Avalon Technologies Limited’s market capitalization is ₹3,335 crore. The price-to-earnings ratio (P/E ratio) is 76.4. Avalon Technologies Limited is poised to enhance its manufacturing capabilities with the upcoming launch of a new plant in Chennai. Scheduled to commence operations by the first quarter of the fiscal year 2025 (Q1 FY25)

Shareholding Pattern

• NIPPON LIFE INDIA TRUSTEE LTD-A/C NIPPON INDIA SMALL CAP FUND holds a 5.76%
• HDFC Mutual Fund – HDFC Focused 30 Fund holds a 4.72% stake.
• HDFC Mutual Fund – HDFC Defence Fund holds a 1.11% stake.
• Edelweiss Mutual Fund – Edelweiss Small Cap Fund holds a 1.06% stake.
• The total Domestic Institutional Investors (DIIs) holding in Avalon Technologies Limited is 22.47%.

Avalon Technologies Limited demonstrates its versatility and expertise through its varied product applications across a wide range of end-use industries:

1. Aircraft Engine Parts: Avalon manufactures precision-engineered components for aircraft engines, ensuring high quality and reliability for aviation applications.
2. Telecom, Satellite Systems, and Digital Infrastructure: Avalon provides electronic manufacturing services for telecommunications equipment, satellite systems, and digital infrastructure, supporting connectivity and communication networks.
3. Medical Devices: Avalon specializes in the production of electronic components and devices for medical applications, adhering to stringent quality standards and regulatory requirements in the healthcare industry.
4. Products for Defense Applications: Avalon caters to the defense sector by manufacturing electronic systems and components for defense applications, contributing to national security and defense capabilities.
5. Clean Energy: Avalon has a presence in the clean energy sector, including solar, hydrogen, and electric vehicles industries. They provide electronic manufacturing solutions for renewable energy systems, hydrogen technologies, and electric vehicle components, supporting sustainable energy initiatives.
6. Signaling and Braking Systems for Railways: Avalon manufactures signaling and braking systems for railways, ensuring safety and efficiency in rail transportation systems.

Avalon Technologies Limited specializes in high-Mix Products across various industries, including:

1. Combustion Liner for Aerospace: Avalon manufactures combustion liners, critical components used in aerospace propulsion systems. These liners play a crucial role in the combustion process, ensuring efficient and reliable operation of aircraft engines.
2. Piston Assembly for Fueling System: Avalon produces piston assemblies for fueling systems, which are essential components in fuel delivery mechanisms. These assemblies are designed to regulate the flow of fuel in various industrial applications, ensuring accurate and efficient fuel distribution.
3. Anti-Collision Signaling System for Industrials: Avalon manufactures anti-collision signaling systems used in industrial settings to enhance workplace safety. These systems employ advanced signaling technology to alert workers and prevent collisions between moving equipment or vehicles, reducing the risk of accidents and injuries.
4. Signaling Systems for Railways: Avalon specializes in manufacturing signaling systems for railways, which play a critical role in maintaining safe and efficient rail operations. These systems include signaling devices, control units, and communication systems that facilitate the movement of trains and ensure compliance with signaling protocols and regulations.

Technical Chart Weekly

Avalon Technologies’ IPO was open for subscription between April 3-6 as the company raised Rs 865 crore via primary route in the fixed price band of Rs 415-436. Stock Listed on Both #nseindia And #BSE India on 18 April 2023.

Top Electronic Manufacturing Service in India | Full-Spectrum OEM Production (avalontec.com)

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