AVT Natural Products Research Report By IndiaNivesh

AVT Natural stands on strong balance sheet being net debt free as on 31st March 2014. Its revenue grew at a CAGR of around 36% in last 4 years, in an economically tough global environment. During the same period Shareholders fund posted CAGR of 35% while that for fixed assets gross block came at 7%, depicting management’s resolve to add on capacities despite challenging environment. Profit after tax delivered a CAGR of 57% and cash & bank balance had a CAGR of 48% from FY’10 to FY’14.

Assuming the company is able to sustain its top line growth momentum
picked up in Q1FY15, we expect AVT Natural to deliver over 25% revenue growth in FY’15. Based on annualized consolidated PAT margin of 14.50%
(same as in FY’14); its FY’15 EPS works out to be Rs 3.45. Valuing the company at P/E multiple of 20x for FY’15 the target stock price comes at Rs 69.

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