Equity Watch

AVON CORP. a dark horse in weighing scales business

AVON CORP  was listed on the Bombay Stock Exchange on 3rd July 2008 and it’s currently managed by Mr. Pankaj Saraiya, Managing Director & CEO. The core line business of Avon is to manufacture wide range of personal & industrial weighing scales,and also deals in high end products such as Body Composition Analyzers & Blood Pressure Monitors..In the basket of products are Precision and Analytical Balances for precise and reliable readings in laboratories, industrial balances, Test weights with DKD Calibration. During the first fiscal year, Avon reached a turnover of ` 26 Lakh (Year 1995-96) and within the period of Fifteen years Avon reached INR 116 Crores (Year 2009-10). The Company has got global recognition as it has also been dealing in products like KERN a German made machine and JAWON from South Korea.

Avon as a Company is ISO 9001: 2008 certified and its entire products are certified by Weights & Measure Department.

The Company has its principle manufacturing unit at Baddi, Himachal Pradesh. Avon’s clientele covers major pharma & chemical corporates, R&D centers, jewellery industries, government sectors and retail segments. It also provides consulting services to various industrial houses, on the latest weighing Systems and Applications.

Avon has managed to get an immense response as its product are very elite and are catering to  the masses.

On financial front Co’s top line and bottom line has seen a quantum jump during the last 6 months of  FY2011  see here ..If the latest trend is continued ,company should double its top line and report an EPS of Rs. 4 , thus giving a discounting (P/E) of only 2 to its CMP!!! Wow !! who would like to miss it? so grab it now..

This report has been prepared solely for information purposes and the information contained herein may not be deemed to be an investment advice. Such information is impersonal and not tailored to the investment needs of any specific person. The information contained herein is not a complete analysis of every material fact representing any company, industry or security. The views expressed may change. While the information contained herein has been obtained from sources believed to be reliable, no responsibility (or liability) is accepted for the accuracy of its contents. Investors are advised to satisfy themselves before making any investments and should consult with and rely upon their own advisors whether and how to use such information in making any investment decision. Neither the author nor his firm accepts any liability arising out of use of the above information 

 

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6 thoughts on “AVON CORP. a dark horse in weighing scales business

  1. Hi Chandrakant Yechuri,

    Check out the time of equity dilution ( mid to end 2008) when the markets were sliding and there were no investors ..Still AVON CORP.could raise almost 3 times the paid up equity..The original promoters have already increased there stake by 2.5% during the last 3 months..This is on the increased capital base.On the old capital base it will be about 10%..The latest Quarter results prove that the investors were right.Note that the company also declared a dividend which is rare in the very first year and after diluting the equity 3 fold.
    I don’t see a downward risk of more than Rs. 3 while the upside is not known.Risk /reward ratio favours a strong buy…

    Like

  2. aditya kaw says:

    Dingra Sahaab , can you please comment on avon corporation target after 6 months. i have bought 17000 shares @rs 6.81 . should i average by buying more at Rs 6.00 . kindly advise

    Like

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