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Check Before You Invest : Avatar Industries Ltd

BSE: 0 NSE: AVATAR ISIN: INE617I01024
  |   Sector:  Automobiles   |   Industry:  Auto Ancillary

Snapshot

Q.1 Which industry/sub-sector does Avatar Industries Ltd belong to?
Avatar Industries Ltd belongs to the Automobiles sector, operating specifically within the Auto Ancillary segment.
Q.2 Is Avatar Industries Ltd a good quality company?
Avatar Industries Ltd is a weak quality company, based on a inconsistent 7-year financial track record.
Q.3 Is Avatar Industries Ltd undervalued or overvalued?
Avatar Industries Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Avatar Industries Ltd a good buy now?
Avatar Industries Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Avatar Industries Ltd?
Avatar Industries Ltd revenue growth is 0% for FY-2025, which is above its 5-year CAGR of -100%, indicating faster growth.
Q.2 Return on capital employed (ROCE) of Avatar Industries Ltd?
Avatar Industries Ltd Return on capital employed is 0.27% for FY-2025, which is below its 5-year historical median of 3.11%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.
Q.3 Return on Asset of Avatar Industries Ltd?
Avatar Industries Ltd Return on Asset is 0.25%, which is below its 5-year historical median of 1.17%, indicating deteriorated asset utilization efficiency.
Q.4 Return on Equity (ROE) of Avatar Industries Ltd?
Avatar Industries Ltd Return on equity is 0.24% for FY-2025, which is below its 5-year historical median of 1.24%, indicating the business is making worse use of its shareholders capital.
Q.5 Gross Profit margin of Avatar Industries Ltd?
Avatar Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 23.9% for FY-2025, which is above its 5-year median of 0.1%, indicating increasing margins.
Q.6 Operating Profit Margin of Avatar Industries Ltd?
Avatar Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 0% for FY-2025, which is above its 5-year median of -6.48% indicating increasing margins.
Q.7 Net Profit Margin of Avatar Industries Ltd?
Avatar Industries Ltd Net Profit Margin is -% for FY-2025, is below with its 5-year median of 3.75%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin 23.9 0.1
Operating Profit Margin - -6.48
Net Profit Margin - 3.75
Q.8 Debt to Equity ratio of Avatar Industries Ltd?
Avatar Industries Ltd Debt-to-Equity ratio is 0.00, which is lower with the industry average of 0.46, indicating lower debt levels in the industry.
Q.9 Debt to cash flow from operations of Avatar Industries Ltd?
Avatar Industries Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Avatar Industries Ltd?
Promoters hold 66.32% of the Avatar Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Avatar Industries Ltd vs industry peers?
Avatar Industries Ltd revenue CAGR is -100.00%, compared to the industry median CAGR of 12.41%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth - 12.4
Gross Profit Growth 0 16.2
Operating Profit Growth 0 14.7
Net Profit Growth 0 20
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover - 1.23
ROE 0.24 12.01
ROCE 0.27 13.5
Cash Conversion Cycle (days) - 47

Valuation & price assessment

Q.1 Stock return of Avatar Industries Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 41.78% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price
CAGR
- 41.8% 71% 200.6%
Q.3 Valuation ratios of Avatar Industries Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 1332.42 88.50 28.80
Price to Book 3.27 1.19 2.99
Price to Sales - 3.48 1.35
EV to EBITDA 1218.95 50.62 11.86

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