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What is the story about?
Shares of Avalon Technologies Ltd. are locked in a 20% upper circuit on Tuesday, February 3, in response to the India-US trade deal that was announced on Monday night.
The stock has gained in four out of the last five trading sessions. The last instance of the stock gaining 20% in a single session was back in November 2024.
Avalon Technologies is a fully integrated Electronic Manufacturing Services (EMS) company, focusing on high-value precision engineered products.
As per the India-US trade deal, the tariff paid on exports to the US by Indian companies will come down to 18% from 50% currently, with more clarity awaited on what happens to the sectors under Section 232.
As of the September quarter of financial year 2026, Avalon Technologies derived 61% of its overall topline from the US market. The US business grew by 52% from last year during the first half of the financial year.
"Our long-standing presence in the US, deep understanding of the geography, and strong customer relationships have helped us maintain tariff recoveries of over 99% from customers, underscoring the trust and partnership we share with them," the management had highlighted during the second quarter earnings call.
20% of the company's manufacturing base is also present in the US.
At the end of the December quarter, India's Domestic Mutual Funds held a 21.78% stake in Avalon Tech, with Nippon AMC, HSBC MF, Axis MF, LIC MF and HDFC MF among the prominent shareholders. Over 55,000 retail shareholders or those with authorized share capital of up to ₹2 lakh, had a 9.11% stake as of the December quarter.
Shares of Avalon Tech are in 20% upper circuit at ₹1,022.7. The stock has risen 51% over the last 12 months.
The stock has gained in four out of the last five trading sessions. The last instance of the stock gaining 20% in a single session was back in November 2024.
Avalon Technologies is a fully integrated Electronic Manufacturing Services (EMS) company, focusing on high-value precision engineered products.
As per the India-US trade deal, the tariff paid on exports to the US by Indian companies will come down to 18% from 50% currently, with more clarity awaited on what happens to the sectors under Section 232.
As of the September quarter of financial year 2026, Avalon Technologies derived 61% of its overall topline from the US market. The US business grew by 52% from last year during the first half of the financial year.
"Our long-standing presence in the US, deep understanding of the geography, and strong customer relationships have helped us maintain tariff recoveries of over 99% from customers, underscoring the trust and partnership we share with them," the management had highlighted during the second quarter earnings call.
20% of the company's manufacturing base is also present in the US.
At the end of the December quarter, India's Domestic Mutual Funds held a 21.78% stake in Avalon Tech, with Nippon AMC, HSBC MF, Axis MF, LIC MF and HDFC MF among the prominent shareholders. Over 55,000 retail shareholders or those with authorized share capital of up to ₹2 lakh, had a 9.11% stake as of the December quarter.
Shares of Avalon Tech are in 20% upper circuit at ₹1,022.7. The stock has risen 51% over the last 12 months.
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