Check Before You Invest : Avro India Ltd

Snapshot

Q.1 Which industry/sub-sector does Avro India Ltd belong to?

Avro India Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Plastic Products segment.

Q.2 Is Avro India Ltd a good quality company?

Avro India Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Avro India Ltd undervalued or overvalued?

Avro India Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Avro India Ltd a good buy now?

Avro India Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Avro India Ltd?

Avro India Ltd revenue growth is -16.1% for FY-2025, which is below its 5-year CAGR of 12.19%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Avro India Ltd?

Avro India Ltd Return on capital employed is 8.21% for FY-2025, which is below its 5-year historical median of 20.56%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Avro India Ltd?

Avro India Ltd Return on Asset is 3.5%, which is below its 5-year historical median of 8.21%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Avro India Ltd?

Avro India Ltd Return on equity is 6.19% for FY-2025, which is below its 5-year historical median of 19.54%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Avro India Ltd?

Avro India Ltd Cash conversion cycle is 115 days, above its 5-year historical median of 77 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.9	1.99
ROE	6.19	19.54
ROCE	8.21	20.56
Cash Conversion Cycle	115 days	77 days

Q.6 Gross Profit margin of Avro India Ltd?

Avro India Ltd Gross profit margin which is the profit after deduction of direct costs, is 10.3% for FY-2025, which is above its 5-year median of 9%, indicating increasing margins.

Q.7 Operating Profit Margin of Avro India Ltd?

Avro India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 6.52% for FY-2025, which is below its 5-year median of 7.14% indicating decreasing margins.

Q.8 Net Profit Margin of Avro India Ltd?

Avro India Ltd Net Profit Margin is 3.88% for FY-2025, is below with its 5-year median of 4.32%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	10.3	9
Operating Profit Margin	6.52	7.14
Net Profit Margin	3.88	4.32

Q.9 Debt to Equity ratio of Avro India Ltd?

Avro India Ltd Debt-to-Equity ratio is 0.26, which is lower with the industry average of 0.33, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Avro India Ltd?

Avro India Ltd Debt to cash flow from operations is -8.64, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Avro India Ltd?

Promoters hold 54.07% of the Avro India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Avro India Ltd vs industry peers?

Avro India Ltd revenue CAGR is 12.19%, compared to the industry median CAGR of 7%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-16.1	7
Gross Profit Growth	-	NAN
Operating Profit Growth	-16.7	11
Net Profit Growth	-25	17.6

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.9	1.14
ROE	6.19	7.53
ROCE	8.21	8.9
Cash Conversion Cycle (days)	115.49	86

Valuation & price assessment

Q.1 Stock return of Avro India Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of -20.54% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-20.5%	-2.8%	-24.8%

Q.3 Valuation ratios of Avro India Ltd vs historical?

The current P/E is similar 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	41.56	40.12	21.91
Price to Book	1.92	5.68	1.89
Price to Sales	1.85	1.81	1.33
EV to EBITDA	16.24	17.16	11.02

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