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Check Before You Invest : AVT Natural Products Ltd

BSE: 519105 NSE: AVTNPL ISIN: INE488D01021
  |   Sector:  Agriculture & Allied activities   |   Industry:  Agriculture

Snapshot

Q.1 Which industry/sub-sector does AVT Natural Products Ltd belong to?
AVT Natural Products Ltd belongs to the Agriculture & Allied activities sector, operating specifically within the Agriculture segment.
Q.2 Is AVT Natural Products Ltd a good quality company?
AVT Natural Products Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is AVT Natural Products Ltd undervalued or overvalued?
AVT Natural Products Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 22.35 22.86
Price to Book 1.99 3.01
Price to Sales 1.71 2.42
EV to EBITDA 14.09 13.79
Q.4 Is AVT Natural Products Ltd a good buy now?
AVT Natural Products 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

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of AVT Natural Products Ltd?
AVT Natural Products Ltd revenue growth is 3.2% for FY-2025, which is below its 5-year CAGR of 6.16%, indicating slower growth.

Q.2 Gross Profit margin of AVT Natural Products Ltd?
AVT Natural Products Ltd Gross profit margin which is the profit after deduction of direct costs, is 12.4% for FY-2025, which is below its 5-year median of 15.4%, indicating decreasing margins.

Q.3 Operating Profit Margin of AVT Natural Products Ltd?
AVT Natural Products Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 10.45% for FY-2025, which is below its 5-year median of 14.58% indicating decreasing margins.

Q.4 Net Profit Margin of AVT Natural Products Ltd?
AVT Natural Products Ltd Net Profit Margin is 7.33% for FY-2025, is below its 5-year median of 9.21%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 12.4 15.4
Operating Profit Margin (%) 10.45 14.58
Net Profit Margin (%) 7.33 9.21

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of AVT Natural Products Ltd?
AVT Natural Products Ltd Return on Asset is 5.86%, which is below its 5-year historical median of 10.71%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of AVT Natural Products Ltd?
AVT Natural Products Ltd Return on capital employed is 10.86% for FY-2025, which is below its 5-year historical median of 18.19%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of AVT Natural Products Ltd?
AVT Natural Products Ltd Return on equity is 7.83% for FY-2025, which is below its 5-year historical median of 13.89%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of AVT Natural Products Ltd?
AVT Natural Products Ltd Cash conversion cycle is 187 days, above its 5-year historical median of 163 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 (x) 0.81 1.19
ROE (%) 7.83 13.89
ROCE (%) 10.86 18.19
Cash Conversion Cycle 187 days 163 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of AVT Natural Products Ltd?
AVT Natural Products Ltd Debt-to-Equity ratio is 0.17, which is above the industry average of 0.13, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of AVT Natural Products Ltd?
AVT Natural Products Ltd Debt to cash flow from operations is -1.6, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of AVT Natural Products Ltd?

Q.1 Promoter shareholding and pledge status of AVT Natural Products Ltd?
Promoters hold 75.00% of the AVT Natural Products Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does AVT Natural Products Ltd performance compare with that of its Peers?

Q.1 Revenue growth of AVT Natural Products Ltd vs industry peers?
AVT Natural Products Ltd revenue CAGR is 6.16%, compared to the industry median CAGR of 0.00%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 3.2 0
Gross Profit Growth (%) -15.6 15.2
Operating Profit Growth (%) -21.7 21.2
Net Profit Growth (%) -17.4 8.5
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.81 0.53
ROE (%) 7.83 7.6
ROCE (%) 10.86 8.57
Cash Conversion Cycle (days) 187.45 73

Valuation & price assessment

Q.1 Stock return of AVT Natural Products Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 7.8% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
7.8% 3.8% -10.8% 11.3%
Q.2 Valuation ratios of AVT Natural Products Ltd vs historical?
The current P/E ratio of 22.35 is in line with than its historical median of 22.86, indicating that the stock is trading near its historical average valuation.
Q.3 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 22.35 22.86 20.70
Price to Book 1.99 3.01 1.93
Price to Sales 1.71 2.42 1.89
EV to EBITDA 14.09 13.79 13.08

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