AVT Natural Products – Multibagger Analysis

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.

Website: http://www.avtnatural.com/

Analysis: http://www.screener.in/company/519105

Warren Buffett Checklist

History of Consistently Increasing Sales, Earnings & Cash Flowimage_thumbimage
Durable Competitive AdvantageCompany have competitive edge of:

  • Marigold Oleoresins
  • Spice Oleoresins and Essential Oils
  • Value Added Teas
Future Growth DriversCompany have good export base for Vanilla pods & the demand is increasing in global market.image
Conservative Debt (long term debt < 3 Net Profit)Debt comes around 60 Crores & 3 Year Net Profit comes around 150 Crores.  Yes – this company can sail smooth on tough times.image
Return on Equity must be Above AverageImpressive ROE
Low CAPEX required to maintain current operationsCompany requires moderate CAPEX.image
Management is holding / buying the stockPromoters are increasing their holdings in past years.  Good sign of confidence from them.


Price is Under Valued (< intrinsic value)Intrinsic Value comes around 10 & the Current Market Price of stock is around 20.  This parameter fails.  (Although company have high ROE, the EPS growth is not too impressive & thus reflected here)image
Stock Price is consolidatingYes




Additional Futurecaps Checklist

PE, PB RatioPE: 6; Book Value is 11 & CMP quoting above book value.image
Cash Flow PositiveNegative Cash flows exists. (Please ensure financing activities)image
Paying Dividends, TaxYes. Impressive Dividends.image
EPS Growth Rate10%. Not Impressiveimage
Expected Gain in 10 Years3Ximage
Power of BrandExistsimage
Corporate Governance, Reputation of Leadershttp://www.avtbiotech.com/pdf/1.pdfimage


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.

About Futurecaps

Futurecaps is a 12+ year experienced Indian Stock Market Advisory with SEBI Registration.

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3 Replies to “AVT Natural Products – Multibagger Analysis”

  1. Would required your knowledge for two stock
    1) l&t finance holding
    2) tourism finance corporation of india

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