Mehabe score: 6 G Factor: 3 Piotski Score: 7 The stock has a rating OBSERVE & HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 3 and Piotski score of 7.
Description
AVT Natural Products is engaged in the production, trading and distribution of Oleoresins and value added Teas.(Source : 201903 Annual Report Page No: 61) Site:AVTNPL Main Symbol:AVTNPL
Stock trades at 99.7, above its 50dma 82.66. It also trades above its 200dma 73.61. The stock remains bullish on techicals
The 52 week high is at 109.00 and the 52week low is at 41.50
Price Chart
P/E Chart
Sales and Margin
Strengths
– has been maintaining a healthy dividend payout of 26.55%
Weakness
– has a low return on equity of 12.38% for last 3 years.
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 26.5x. Agro Tech Foods. trades at the industry’s max P/E of 105.38x. AVTNPL trades at a P/E of 25.8x
– Industry’s mean G-Factor is 3.1 while the mean Piotski score is 7.0. AVTNPL has a G-Factor of 3 and Piotski scoreof 7.
– Average 1 month return for industry is 6.7%. The max 1- month return was given by BCL Industries: a return of 29.19 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 135.0 cr compared to Rs 125.0 cr for period ended Sep 2020, a rise of 8.0% .
vis-vis 15.0 for period ended Sep 2020 .
Operating Margins expanded 429.6 bps for period ended Sep 2021 vis-vis Sep 2020.
Company reported operating profit of Rs 22.0 cr for period ended Sep 2021 and operating profit margin at 16.3 % for same period.
The EPS for quarter ended Sep 2021 is Rs 0.93 compared to Rs 1.07 for previous quarter ended Jun 2021 and Rs 0.6 for Sep 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 537.0 cr for period ended TTM vis-vis sales of Rs 485.0 cr for the period ended Mar 2021, a growth of 9.7%. The 3 year sales cagr stood at 16.6%.
Operating margins expanded to 16.0% for period ended TTM vis-vis 15.0% for period ended Mar 2021, expansion of 100.0 bps.
Net Profit reported at Rs 59.0 cr for period ended TTM vis-vis sales of Rs 45.0 cr for the period ended Mar 2021, rising 23.7%.
Company recorded a healthy Net Profit CAGR of 41.1% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 125% on a 1 Year basis vis-vis a return of 68% over the last 3 Years. – The compounded sales growth on a TTM bassis is 21% vis-vis a compounded sales growth of 14% over the last 3 Years. – The compounded profit growth on a TTM basis is 54% vis-vis a compounded profit growth of 25% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Dec 2021 fii holding stood at 0.02% vis-vis 0.02% for Sep 2021 – Public shareholding has remained largely constant. The Dec 2021 public holding stood at 24.97% vis-vis 24.96% for Sep 2021
Conclusion
– has been maintaining a healthy dividend payout of 26.55% – has a low return on equity of 12.38% for last 3 years.
– might be capitalizing the interest cost
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 82.66 and is trading at 99.7 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
