Shares of this furniture manufacturing company clocked 20 percent upper circuit after announcing the onboarding of new distributors and geographical expansion. The shares have delivered more than 20 percent return in just 5 trading sessions.
With a market capitalization of Rs. 139 crores, the shares of Avro India Ltd started Monday’s trading session on a flatter note at Rs. 115.50 compared to its previous close of Rs. 115.40. During the trading session, the shares clocked 20 percent upper circuit at Rs. 138.45 a piece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that they had onboarded more than 50 distributors in Q4 of FY 2023-24 and are in the process of onboarding more than 50 distributors in Q1 of FY 2024-25 which could impact sales growth substantially.
Furthermore, the company mentioned that it has expanded its reach beyond North Indian territories and is trying to increase its reach in the segment of plastic furniture by tapping potential distributors and dealers in twenty-four states and union territories spread across India from South to East and Western India.
Coming onto the company’s financial statements, the revenue zoomed by 54 percent from Rs. 18.97 crores during the September quarter to Rs. 29.18 crores in the December quarter. In addition, the net profits increased by 9 percent from Rs. 1.02 crores to Rs. 1.12 crores during the same period.
Due to consistent operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 22.92 percent during FY 21-22 to 25.03 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 22.90 percent to 25.83 percent during the same timeframe. Furthermore, the net profit margin increased from 4.60 percent during FY21-22 to 5.19 percent during FY22-23.
According to the recent shareholding pattern, the Promoters of the company possess a majority stake of 70.37 percent, indicating their significant ownership and control over the company’s affairs. The remaining 29.63 percent of shares are held by Public or Retail Investors.
Headquartered in Uttar Pradesh, Avro India was incorporated in 1996. The company manufactures Plastic moulded Furniture under the brand names AVRO and AVON and sells pan India through both online and offline modes. It also recycles Plastic Packaging Waste material.
Written By Vaibhav Patil
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
