Mehabe score: 3 G Factor: 5 Piotski Score: 7 The stock has a rating 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 5 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:AVTNPLMain Symbol:AVTNPL
Stock trades at 67.9, below its 50dma 70.91. However it is trading above its 200dma 56.95. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 70.91.
The 52 week high is at 84.75 and the 52week low is at 39.40
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.
Competition
– The industry trades at a mean P/E of 26.7x. Agro Tech Foods. trades at the industry’s max P/E of 93.93x. AVTNPL trades at a P/E of 23.0x
– Industry’s mean G-Factor is 4.9 while the mean Piotski score is 7.0. AVTNPL has a G-Factor of 5 and Piotski scoreof 7.
– Average 1 month return for industry is 3.3%. The max 1- month return was given by Vijay Solvex: a return of 77.44 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 147.0 cr compared to Rs 105.0 cr for period ended Jun 2020, a rise of 40.0%
Operating Profits reported at Rs 24.0 cr for period ended Jun 2021 vis-vis 15.0 for period ended Jun 2020 .
Operating Margins expanded 204.1 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 1.07 compared to Rs 0.78 for previous quarter ended Mar 2021 and Rs 0.51 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 528.0 cr for period ended TTM vis-vis sales of Rs 485.0 cr for the period ended Mar 2021, a growth of 8.1%. The 3 year sales cagr stood at 15.9%.
Net Profit reported at Rs 54.0 cr for period ended TTM vis-vis sales of Rs 45.0 cr for the period ended Mar 2021, rising 16.7%.
Company recorded a healthy Net Profit CAGR of 37.0% 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 49% on a 1 Year basis vis-vis a return of 25% over the last 3 Years. – The compounded sales growth on a TTM bassis is 22% vis-vis a compounded sales growth of 14% over the last 3 Years. – The compounded profit growth on a TTM basis is 34% vis-vis a compounded profit growth of 25% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 0.0% vis-vis 0.0% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 25.02% vis-vis 25.02% for Mar 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.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains below its 50 DMA 70.91 and is trading at 67.9. Shows a near term lack of buying interest.
