Avalon Technologies 🎉
▫️CMP 527
▫️Market cap 3.4k Cr
▫️Electronic Manufacturing Services ("EMS") company
▫️Provides full stack product & solution suite.
🔸“PCB” design and assembly 🔸Manufactures complete electronic systems (“Box Build”)
▫️ Support Global OEMs across the US, China, Netherlands & Japan
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Thread 🧵
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1️⃣ Revenues growth 🎉
▫️Last 3 years, 14% CAGR
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2️⃣ Profit Growth 🎉
▫️Last 3 years , 66%
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3️⃣ Some Numbers 🎉
▫️ Fairly valued, I don't personally care about valuations if the business offers something future proof.
▫️Small Debt of 130 Cr
▫️Cash Reserves of 500+ Cr
▫️Entire Sector demands high PE close to 80
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4️⃣ Sectors Served 🎉
✅ Clean Energy
▫️ Services Caters to Charging stations, Digital Cockpits
▫️ Manufacture and assemble in different locations as per customers needs
⚡ Electric Vehicles Proxy
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✅Mobility
🚀 Aircrafts Proxy
▫️ manufactures complex sheet metal fabrications
▫️manufacturing support in aircraft seating, cargo, smoke detectors and engine parts
▫️aerospace plastics for aircraft
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✅ Mobility
🚂 Trains/ Railways
▫️ Across the globe, Avalon has worked with leading OEMs and rail operators to support the creation of railway systems.
▫️Support global railway transport manufacturers in India
▫️Products are in applications ranging from signaling
#Railways #stockmarketcrash #StockMarketindia

✅ Mobility
🚛 AUTOMOTIVE
▫️Supports the e-mobility technologies.
▫️An experience in electronic control units and telematics additionally provides competitive advantages to our automotive customers
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✅ Sector - Communication 🎉
🗼5G
▫️Support 5G network equipment manufacturers with concept-to-realization and turnkey builds.
▫️Manufactures antenna boxes, remote radio heads (RRH) and baseband units (BBU) help our customers using 5G technologies
#5G #SAR #StockMarketindia
#stockmarketcrash

📡 Satelite
▫️ Create satellite-enabled location-based solutions, such as base station antenna systems, digital antennas, and control panel systems
#Avalon #StockMarket

📷 Digital Infra
▫️Avalon helps customers leverage IoT and telematic technology to meet this global need.
▫️The integrated design and manufacturing capabilities, supported by a global supply chain, enable swift and optimized manufacturing support. ▫️Products include cameras and communication systems
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✅ Power Sector
▫️Supports customers which works in the areas of power generation, power transmission and distribution, power storage and power conditioning systems

Capabilities & Solutions 🎉
▫️Design, Engineering, NPI
▫️Life Cycle Management
▫️Cable & Wire Harness
▫️Sheet Metal
▫️Aerospace Metal
▫️Supply Chain & Logistics

🧠 My thoughts 🎉
✅Diverse Sector Exposure:
▫️A business navigating various sectors enjoys a robust revenue stream, making missteps in revenue generation unlikely
✅Government Backing in EMS:
▫️The EMS sector benefits from government support, providing an additional advantage for sustained growth
✅PE Consideration:
▫️The traditionally high PE in this sector, exemplified by Kaynes Technologies, is a norm that shouldn't deter investors.
✅Competitive Landscape Confidence:
▫️Although competitive, the sector's substantial size minimizes concerns, providing a favorable outlook
✅Nascent Stage Advantage:
▫️The entire sector being in its infancy bodes well not only for the highlighted stock but also for others, indicating significant growth potential
✅Banking on Strategic Opportunities:
▫️Pinning hopes on future opportunities, such as Mobilization, Digitization, Aerospace Defense, and the ongoing disruption by Automation & EV in the automotive industry.
🗼A strategic play for potential growth🗼