Avalon TechnologiesNSE:AVALON +0.96%76 Gross Margin % is 33.68% as of Mar. 2026, which is 6% below its 10-year median of 35.76. GuruFocus rates NSE:AVALON with a GF Score™ of 76/100 and a GF Value™ of ₹1,134.12 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 2,454 Hardware companies, Avalon Technologies ranks better than 68.3% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Avalon Technologies had a gross margin of 33.68% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Avalon Technologies Gross Margin % Related Terms
Avalon Technologies Gross Margin % Historical Data
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The historical data trend for Avalon Technologies's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Electronic Components subindustry, Avalon Technologies's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Avalon Technologies Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Avalon Technologies's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Avalon Technologies's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Avalon Technologies (NSE:AVALON) has a Gross Margin % of 33.68% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Avalon Technologies and its competitors. This is near median its historical median of 35.76. Over the past decade, Avalon Technologies' Gross Margin % has ranged from 33.88 to 36.68. According to the industry distribution chart, Avalon Technologies ranks #778 out of 2454 companies in the Hardware industry, placing it in the top 31.7%.
Is Avalon Technologies' Gross Margin % too high?
Avalon Technologies' current Gross Margin % of 33.68% is near median its 10-year median of 35.76. Over the past 10 years, this metric has ranged from a low of 33.88 to a high of 36.68. The Hardware industry median Gross Margin % is 24.53. Avalon Technologies' value of 33.68% is 37.3% above this industry median. Based on the distribution chart, Avalon Technologies ranks #778 out of 2454 companies in the Hardware industry, which is above the industry midpoint. Overall, Avalon Technologies has a GF Score™ of 76/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Avalon Technologies' Gross Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Avalon Technologies ranks #778 out of 2454 companies for Gross Margin %. This puts Avalon Technologies in the upper half of its industry. The industry median Gross Margin % is 24.53. Avalon Technologies' value of 33.68% is 37.3% above this benchmark. Historically, Avalon Technologies' own Gross Margin % has ranged from 33.88 to 36.68 over the past decade. While the company's 10-year median is 35.76 vs. the industry median of 24.53, Avalon Technologies has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Hardware company?
The median Gross Margin % among Hardware companies is 24.53, based on 2,454 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Avalon Technologies's current Gross Margin % of 33.68% is 37.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Avalon Technologies and its competitors. For the Hardware industry, the median Gross Margin % is 24.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Avalon Technologies's current Gross Margin % is 33.68%, which is near median its own 10-year median of 35.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Avalon Technologies stock overvalued right now?
Based on GuruFocus' analysis, Avalon Technologies (NSE:AVALON) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹1,134.12, compared to a current price of ₹1,795.30 — trading 58.3% above its estimated fair value. The current Gross Margin % is 33.68%, which is near median its 10-year median of 35.76 and 37.3% above the Hardware industry median of 24.53. Avalon Technologies' overall GF Score™ is 76/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Avalon Technologies (NSE:AVALON), the current Gross Margin % is 33.68% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Avalon Technologies (NSE:AVALON) Overvalued in 2026?
Based on GuruFocus' analysis, Avalon Technologies stock appears to be overvalued.
The current stock price of ₹1,795.30 is trading 58.3% above its estimated GF Value™ of ₹1,134.12.
GuruFocus considers Avalon Technologies to be Significantly Overvalued.
Key valuation signals for NSE:AVALON:
Gross Margin %: 33.68% (near median its 10-year median of 35.76)
GF Value™: ₹1,134.12 vs. price of ₹1,795.30 (58.3% above fair value)
Industry Position: 37.3% above the Hardware median (#778 of 2454)
No single metric tells the full story. See the NSE:AVALON stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Avalon Technologies Ltd is a fully integrated electronic manufacturing services company. It is engaged in providing Electronics Manufacturing Services (EMS) with capabilities in printed circuit board assembly, custom cable and wire harnesses, etc. Geographically the company generates the majority of its revenue from India.
76GF Score
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