Business Desk- Promoter Selling Stock: There can be a big block deal in electronic manufacturing services i.e. EMS company Avalon Technologies. Promoter Group’s Bhaskar Srinivasan, BBS Family Trust and KBS Family Trust can sell up to 6% stake in the company. According to sources, the value of this deal can be around Rs 861.9 crore.
Share price may be Rs 2,150 to 2,302
The price band of Rs 2,150 to Rs 2,302 per share has been given for the deal. This can be at a maximum discount of about 6.6% compared to the current market price of the company. There will also be a lock-up period of 180 days for sellers in the deal. That means they will not be able to sell shares further during this period.
Nomura increased its share target
This month, brokerage firm Nomura has maintained Buy rating on Avalon Technologies. The brokerage has increased the target price of the share from Rs 2,211.24 to Rs 2,767.32.
This is about 26% more than Friday’s closing price of Rs 2,196.60. This is the highest among all brokerages covering the target stock.
Focus on joint venture with Zollner
According to Nomura, Avalon’s proposed joint venture with Europe’s Zollner could be important for the company. This may increase the company’s reach in the advanced electronics manufacturing services business in Europe. There is also a possibility of adding new global customers.
According to the brokerage, this partnership will give Avalon an opportunity to expand its presence in Europe. The company may also enter segments like healthcare, life sciences and test and measurement.
Analysts’ opinions are divided
According to Bloomberg data, out of 19 analysts covering Avalon Technologies, 9 have given a Buy rating. Whereas 4 analysts have given Hold rating and 6 have given Sell rating.
That means analysts do not have the same opinion regarding the stock. Some analysts are positive about the company’s expansion and joint ventures, while some have a different view on the stock.
stock performance
Shares of Avalon Technologies closed at Rs 2,340 with a gain of 1.37% on BSE on Tuesday. The stock has given multibagger returns of around 150% in the last one month. At the same time, it has increased by 479% in the last 5 years. The market cap of the company is around Rs 15.66 thousand crore.