AVT Natural Products – Multibagger Analysis
Let us analyze the Multibagger possibility of AVT Natural Products according to our typical Warren Buffett Way!
The quick note is: "Not a Multibagger!"
About AVT Natural Products
AVT Natural Products Ltd (AVT NPL) is a venture promoted by AV Thomas Group, as a strategic diversification from the traditional plantation business. Operating in line with its corporate signature, we are specialized in the extraction of colors and flavors from natural source.
Warren Buffett Checklist
Additional Futurecaps Checklist
|PE, PB Ratio||PE: 6; Book Value is 11 & CMP quoting above book value.|
|Cash Flow Positive||Negative Cash flows exists. (Please ensure financing activities)|
|Paying Dividends, Tax||Yes. Impressive Dividends.|
|EPS Growth Rate||10%. Not Impressive|
|Expected Gain in 10 Years||3X|
|Power of Brand||Exists|
|Corporate Governance, Reputation of Leaders||http://www.avtbiotech.com/pdf/1.pdf|
Considering all the parameters above, On the grounds of value investing, We cannot strongly recommend it as a Multibagger, especially in current market range.
Futurecaps recommends 20 to 25 multibaggers per year, we recommend a 25% to 50% allocation of your savings in equity. The stocks recommended here are gone through Analysts of several years experience in stock market. Although they were successful in predicting future multibaggers, the overall stock market is a risky game. So we recommend the reader to put his/her own thoughts & invest wisely.