Thursday, April 8, 2010

Avon Organics

Avon Organics is a hyderabad based company and is into pharma business. It has a plant located in 21 acres about 60 Km from hyderabad.
It manufactures high end product Diketene. It is said that for a commendable success story, the interest should lie in the future, as that is where one spends most of the time. A keen insight and a well-planned development process saw AOL discover the opportunity in the production of Diketene - the basic unit for hundreds of derivatives in pesticides, chemicals, pharmaceuticals and dyestuffs. A highly classified technology, it has been sourced from Shanghai Peng Pu Chemical Works, China, and Xytel Technology Partnership, USA, and now rests in the hands of a few chosen manufacturers across the globe.

Company has posted a turnover of Rs. 70 crore and a net profit of -8.5 crore in March 2008, for the last year, it posted a turnover of Rs. 125 crore and a net profit of 5.5 cr and expected turnover for this year ended March 2010, company sales turnover will be around 145-150 cr and profit is expected to reach 8-8.5 cr which means company has increased its margin in the business by controlling the expenses.Current EPS is 2.5 and expected to post EPS of 4 and CMP is Rs.40/- which is cheap and worth investment. Target expected in 6-9 months is of 60-65 Rs. Accumulated in dips.
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1 comment:

  1. MaheshApril 18, 2010 at 1:01 AM

    Hi Sanket,

    Stock is wonder full for long term. I may see more then 400% return in next 5-6 years.

    Please continue your wonder full work. :)

    Thanks

    ReplyDelete

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