Everonn Education: Quotes, News

BSE 12.250 (0.00%)

NSE 12.1499996185302730 (0.00%)

The company's chairman, Jamshed Irani had resigned from the company after P Kishore, Managing Director of Everonn Education, was arrested on Tuesday, August 30, 2011 on charges of bribery.

On August 4, Tax Sleuths had conducted a search on the premises educational firm. The search revealed that the managing director had concealed taxable income of Rs 116 crore.

According to media reports after revelation, the managing director had approached a tax official through an accountant seeking request to help reduce the income tax liability.

After the news of the Managing Director's arrest, Everonn had hit its lower circuit on Friday at Rs 352. And then it fell again and hit its second lower circuit.

VIEW: This does signify corporate governance issues with the company. And hence, long-term investors should not buy the stock.

Meanwhile, short-term investors and arbitrage investors, along with momentum investors will find ample opportunities to enter the stock and book profits on different price points.

The stocks' current book value per share is Rs 276 per share and it has a debt equity ratio of 0.4 times. Therefore, if the stock fall to Rs 200-220 range then it will be a bargain chip and must be bought into.

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