AVON CORPORATION (BSE CODE: 532995 ) Research Report.

Avon Corporation Ltd. Buy at CMP, for huge returns going forward:

The Company was originally incorporated as a private limited company under the name ‘Avon Weighing Systems Private Limited’ on 4 March 1999, under Companies Act, 1956. Avon Corporation Ltd. is a public limited Company incorporated in India.It is one of the largest manufacturing company in weighing instrument & other products.The Company was originally incorporated as a private limited company under the name ‘Avon Weighing Systems Private Limited’ on 4 March 1999, under Companies Act, 1956. Avon Corporation Ltd. is a public limited Company incorporated in India.It is one of the largest manufacturing company in weighing instrument & other products.

The company is in the process of expanding its production capacity by setting up a new plant in Baddi, Himachal Pradesh. The company has an investment outlay of around Rs.125 Cr for the upcoming plant. It hopes that by setting up the new production facility it will have a cutting edge over its competitors in terms of pricing and quality. The company hopes to recoup the investment by generating higher and efficient production, thus allowing it to derive higher profits. Since Baddi is a tax free zone with no income tax or excise it will allow Avon Corporation Ltd to drastically reduce its production costs by such huge margin as 35%. Thus, lesser production cost will allow it to charge competitive prices with far superior quality. The company is doing well and hopes that 1st phase of expansion would be completed by March, 2011, which is just a few months away. 

 Increasing the Marketing activities in international markets like Dubai and South Africa.

Also the Company has opened a wholly owned subsidiary at Sharja, which already started its operations.

Avon Corporation newly Launched Software Avon has diversified with different kinds of software related to various industries like Avon Windows Based Communication Software, Body Composition Analyzer Software, Density Software, etc. The company launches news products for every half year.

Avon corporation is planning to set up 2^nd unit at its own land in Baddi.
Currently Avon is authorized distributors of Kern & Sohn GMBH, Germany & Jawon Medical, Korea; products in India.

 The book value of the shares of the company stood at Rs.13, and you can see the current marketprices 4.95, & With the dividends yielding by the company the share price will  be rerate soon.

Avon corporation made GDR issue of 48 crores, the net proceeds of the GDR will be utilized for the Expansion & also  for acquisition of another company.

Also there are takeover rumours doing  round Avon corporation. If this is true then you can see huge rally in the counter soon.


Avon corporation is also offering NBFC’s @11.46% pa Interest rate per one year deposit.

The net profit of the company for Q2FY11 came out at Rs.7.32 Cr as against Rs.1.81 Cr in the same period previous year. 

Share holding Pattern:

Promoters holding:17.73%

FII Holding 8%,

Corporates holding more than 1%: Below you can see Angel Broking holding 1.45% of totals shares:

Sl. No.	Name of the Shareholder	No. of Shares	Shares as % of Total No. of Shares
1	ICCI Ltd	1,795,970	2.78
2	KII Ltd	2,140,000	3.31
3	Angel Broking Ltd	937,028	1.45
	Total	4,872,998	7.55

 Below are the details of trading activities on BSE where we can see promoters are accumulating the shares of the company:

Scrip Code:532995   Company Name:Avon Corp   For the period:31-Aug-2010 to 31-Oct-2010

Deal Date	Scrip Code	Scrip Name	Client Name	Deal Type *	Quantity	Price
28/10/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	B	561432	5.05
28/10/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	S	533028	5.04
27/10/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	B	389928	5.07
27/10/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	S	508940	5.07
25/10/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	B	676262	5.03
25/10/2010	532995	Avon Corp	PAYAL GUPTA	B	371952	5.02
25/10/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	S	543592	5.02
25/10/2010	532995	Avon Corp	PAYAL GUPTA	S	371952	5.03
22/10/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	B	446380	5.03
22/10/2010	532995	Avon Corp	PAYAL GUPTA	B	355534	5.03
22/10/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	S	584187	5.04
22/10/2010	532995	Avon Corp	PAYAL GUPTA	S	355534	5.04
19/10/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	B	785560	5.03
19/10/2010	532995	Avon Corp	PAYAL GUPTA	B	466139	5.03
19/10/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	S	602582	5.05
19/10/2010	532995	Avon Corp	PAYAL GUPTA	S	352178	5.04
18/10/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	B	652055	5.04
18/10/2010	532995	Avon Corp	PAYAL GUPTA	B	489888	5.01
18/10/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	S	677930	5.02
18/10/2010	532995	Avon Corp	PAYAL GUPTA	S	539888	5.04
15/10/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	B	646559	5.05
15/10/2010	532995	Avon Corp	PAYAL GUPTA	B	438858	5.03
15/10/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	S	653570	5.04
15/10/2010	532995	Avon Corp	PAYAL GUPTA	S	364193	5.05
14/10/2010	532995	Avon Corp	VINOD AMRATLAL NAAI	B	414221	5.13
14/10/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	B	1200674	5.14
14/10/2010	532995	Avon Corp	VINOD AMRATLAL NAAI	S	400155	5.14
14/10/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	S	1179781	5.08
13/10/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	B	640629	5.14
13/10/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	S	640308	5.16
12/10/2010	532995	Avon Corp	VINOD AMRATLAL NAAI	B	497635	5.10
12/10/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	B	1205348	5.12
12/10/2010	532995	Avon Corp	PAYAL GUPTA	B	366275	5.12
12/10/2010	532995	Avon Corp	NISHANT BHASKAR DESAI	B	409427	5.05
12/10/2010	532995	Avon Corp	VINOD AMRATLAL NAAI	S	497635	5.11
12/10/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	S	1196339	5.08
12/10/2010	532995	Avon Corp	PAYAL GUPTA	S	326275	5.12
12/10/2010	532995	Avon Corp	NISHANT BHASKAR DESAI	S	397567	5.05
11/10/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	B	436676	5.25
11/10/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	S	493017	5.26
8/10/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	B	618458	5.25
8/10/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	S	587468	5.25
7/10/2010	532995	Avon Corp	VINOD AMRATLAL NAAI	B	371336	5.32
7/10/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	B	1312335	5.29
7/10/2010	532995	Avon Corp	VINOD AMRATLAL NAAI	S	359845	5.33
7/10/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	S	1282872	5.31
6/10/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	B	1513102	5.47
6/10/2010	532995	Avon Corp	NISHANT BHASKAR DESAI	B	680565	5.53
6/10/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	S	1526405	5.48
6/10/2010	532995	Avon Corp	NISHANT BHASKAR DESAI	S	540565	5.51
5/10/2010	532995	Avon Corp	INDRAVARUN TRADE IMPEX PVT. LTD.	B	959768	5.34
5/10/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	B	336044	5.63
5/10/2010	532995	Avon Corp	INDRAVARUN TRADE IMPEX PVT. LTD.	S	859768	5.55
5/10/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	S	323337	5.64
4/10/2010	532995	Avon Corp	VINOD AMRATLAL NAAI	B	533099	5.60
4/10/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	B	1992686	5.59
4/10/2010	532995	Avon Corp	VINOD AMRATLAL NAAI	S	533099	5.60
4/10/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	S	1994265	5.57
1/10/2010	532995	Avon Corp	VINOD AMRATLAL NAAI	B	431993	5.69
1/10/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	B	2027890	5.67
1/10/2010	532995	Avon Corp	PAYAL GUPTA	B	360164	5.66
1/10/2010	532995	Avon Corp	VINOD AMRATLAL NAAI	S	431993	5.71
1/10/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	S	2032267	5.64
1/10/2010	532995	Avon Corp	PAYAL GUPTA	S	360164	5.67
30/9/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	B	716263	5.69
30/9/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	S	713884	5.58
29/9/2010	532995	Avon Corp	VINOD AMRATLAL NAAI	B	483619	5.64
29/9/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	B	1434232	5.63
29/9/2010	532995	Avon Corp	VINOD AMRATLAL NAAI	S	483619	5.65
29/9/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	S	1430653	5.61
28/9/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	B	485204	5.67
28/9/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	S	485204	5.66
27/9/2010	532995	Avon Corp	VINOD AMRATLAL NAAI	B	336928	5.69
27/9/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	B	1517904	5.64
27/9/2010	532995	Avon Corp	VINOD AMRATLAL NAAI	S	336928	5.68
27/9/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	S	1521769	5.61
24/9/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	B	601864	5.71
24/9/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	S	665933	5.68
23/9/2010	532995	Avon Corp	VINOD AMRATLAL NAAI	B	332846	5.71
23/9/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	B	806383	5.72
23/9/2010	532995	Avon Corp	VINOD AMRATLAL NAAI	S	332846	5.74
23/9/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	S	803136	5.71
21/9/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	B	418184	5.76
21/9/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	S	417165	5.77
20/9/2010	532995	Avon Corp	VINOD AMRATLAL NAAI	B	462402	5.84
20/9/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	B	1134135	5.84
20/9/2010	532995	Avon Corp	VINOD AMRATLAL NAAI	S	462402	5.83
20/9/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	S	1134205	5.82
17/9/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	B	711574	5.80
17/9/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	S	711575	5.79
16/9/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	B	739439	5.79
16/9/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	S	739439	5.76
15/9/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	B	399755	5.86
15/9/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	S	405698	5.84
14/9/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	B	821282	5.82
14/9/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	S	834781	5.80
13/9/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	B	846730	5.94
13/9/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	S	924209	5.88
9/9/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	B	601701	5.91
9/9/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	S	625334	5.90
8/9/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	B	737917	5.94
8/9/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	S	701704	5.93
7/9/2010	532995	Avon Corp	VINOD AMRATLAL NAAI	B	430666	5.98
7/9/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	B	1149862	6.02
7/9/2010	532995	Avon Corp	VINOD AMRATLAL NAAI	S	430166	5.97
7/9/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	S	1144099	5.92
6/9/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	B	442756	6.32
6/9/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	S	424789	6.32
3/9/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	B	445123	6.23
3/9/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	S	404066	6.21
31/8/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	B	655788	5.93
31/8/2010	532995	Avon Corp	DELIGHT FINANCIAL ADVISOR PVT LTD	S	1193005	5.82

In view of above developments the stock price will be rerated soon. Avon will provide good returns for the money invested in the stock.