Abakkus Mutual Fund has taken a fresh position in Avalon Technologies by adding around 1.16% stake, highlighting growing institutional interest in India’s Electronic Manufacturing Services (EMS) sector.
Avalon Technologies, with a market capitalization of approximately ₹11,300 crore, operates as an integrated EMS provider offering product engineering, manufacturing, testing, and supply-chain solutions to global and domestic customers. The company caters to sectors including industrial, automotive, aerospace, medical, and clean energy applications.
The EMS industry in India has been gaining momentum due to global supply-chain diversification, government incentives, and increasing preference for local manufacturing. Companies operating in this space are expected to benefit from the broader “China+1” strategy as global players look for reliable manufacturing partners outside China.
Avalon Technologies recently reported strong quarterly performance. In Q4FY26, the company delivered a 69.5% year-on-year jump in net profit to ₹41.15 crore, reflecting improved operational performance and business momentum. For the full financial year FY26, the company reported revenue of ₹1,603 crore.
A key positive factor for Avalon is its healthy order book. The company currently has an order book of around ₹2,196 crore, providing visibility for future revenue growth. A strong order pipeline is important in the EMS business as it indicates customer confidence and long-term outsourcing relationships.
However, valuations remain a key point of discussion. The stock is trading at a price-to-earnings (P/E) multiple of around 100x, which suggests that investors are already pricing in strong future growth expectations. At such valuations, execution capability, margin expansion, and sustained order inflows become critical factors.
The investment by Abakkus Mutual Fund signals confidence in Avalon’s long-term growth potential and the structural opportunity in India’s electronics manufacturing ecosystem. While the company benefits from strong industry tailwinds and improving financial performance, investors may continue to monitor whether earnings growth can justify the premium valuation.
Avalon Technologies represents the broader shift of India moving up the manufacturing value chain: from traditional assembly towards high-value engineering and electronics manufacturing.
