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Investing.com - Macquarie has initiated coverage on Avalon Technologies Ltd (NSE:AVALON) with an Outperform rating and a price target of INR1,130.00.
The research firm cites Avalon’s strategic pivot toward the domestic market as a key factor setting the company on a trajectory for sustained revenue growth and higher profit margins.
Macquarie notes that Avalon’s focus on technical products is helping the company secure large orders, which could potentially improve its financial profile beyond current consensus estimates.
The firm also highlights that Avalon’s U.S. unit provides optionality on manufacturing shifting to the United States due to elevated tariffs, representing an additional growth avenue.
Macquarie’s price target of INR1,130 implies a 20x FY28E EV/EBITDA multiple, with the firm identifying significant drivers that could lead to a re-rating of the stock.
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