Avalon Technologies shares nosedives after flat listing. Buy or avoid?
Avalon Technologies shares made a flat debut on Dalal Street in special pre-open session today. Avalon Technologies share price opened on BSE at ₹431 apiece and went on to hit intraday low of ₹411.70 per share. On NSE, Avalon Technologies share price opened at ₹436 apiece. According to stock market experts, Avalon Technologies IPO was highly priced and due to this it received dull response across all categories and Avalon Technologies share listing is on the expected line. They went on to add that allottees should maintain stop loss at ₹405 levels as trigger of this stop loss may lead to downside further towards ₹370 apiece levels.
Speaking on Avalon Technologies share price debut on Dalal Street, Ravi Singhal, CEO at GCL Broking said, “Avalon Technologies IPO listing on expected lines as the public issue was highly priced. The stock was expected to nosedive after listing and hence allottees are advised to maintain stop loss at around ₹400 as it may go further down towards ₹370 apiece levels once it breaches this crucial support.”
Avalon Technologies share price outlook
On Avalon Technologies financials, Pravesh Gour, Senior Technical Analyst at Swastika Investmart said, “Avalon Technologies is a fully integrated EMS company with end-to-end operations that deliver box-build solutions in India. The company operates in a business with high entry barriers and has a global delivery footprint. Despite its strong and stable financial performance, Avalon Technologies experienced a decline in its PAT margin during the first eight months of FY22 and currently has a high debt ratio.”
On suggestion to Avalon Technologies share allottees, Swastika Investmart expert said, “Investors with a high-risk tolerance may consider holding Avalon Technologies shares for long-term, with a recommended stop loss at around ₹405, which is little below the lower price band of ₹415 apiece and its intraday low of ₹411.70 on BSE. ”
On strategy in regard to Avalon Technologies shares, Ravi Singhal of GCL Broking said, “Avalon Technologies share price looks weak due to high valuations. Allottees are advised to maintain stop loss around ₹400 and exit on rise as it may go down towards ₹370 apiece levels. For those missed to get Avalon Technologies shares via allotment process, they should not enter at current levels and look at other quality stocks in banking, auto, capital goods and other domestic market driven stocks.”
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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