AVT Naturals

AVT Natural

  • Main Products:

AVT NPL operates in the business segment of “Solvent Extraction”. There are 3 main products:

â Marigold Extracts for Poultry pigmentation, Eye care and Food Coloring.

â Spice Oils and Oleoresins for Food coloring and flavoring.

â Value Added Beverages through removal of Caffeine from Black Tea using different solvent systems like Ethyl Acetate and Methylene Chloride.

While Marigold Extracts for Eye care and Food coloring is manufactured in India, Poultry pigmentation product is manufactured in our China subsidiary mainly. In case of excess inventory, India operations supply Poultry Pigmentation Market as well.

AVT has

  • Two large continuous extraction plants that can process up to 100 metric tons of raw material per day.

  • medium sized batch plant that can process about 4 metric tons of raw materials per day

  • and a small pilot plants that can process just 15 Kg per day.

These varying throughputs give the plant flexibility to cater various customer volumes

Market Cap:Rs.260.26 Crores

Current Price:Rs.34.20

Book Value:Rs.14.38

Stock P/E:4.90

Dividend Yield:3.66%

Annual Results of Company

** 03 04 05 06 07 08 09 10 11 12**

Sales 32.64 52.10 57.29 71.64 72.35 82.50 96.65 84.73 137.72 228.49

OP 2.52 6.27 10.16 16.16 18.58 14.68 26.51 18.44 23.44 94.34

EBIDT 3.01 6.36 10.28 16.30 18.68 15.01 26.88 18.75 23.59 94.87

Dep 1.99 1.99 2.01 2.01 2.07 2.15 2.46 2.90 3.21 3.23

EBIT 1.02 4.37 8.27 14.29 16.61 12.86 24.42 15.85 20.38 91.64

Int 2.58 2.47 2.16 2.46 3.48 2.87 4.02 3.76 4.89 6.21

EBT -1.55 1.90 6.11 11.83 13.13 9.99 20.40 12.09 15.49 85.43

Tax 0.00 0.00 2.02 5.32 4.93 5.20 4.33 3.60 5.63 24.74

Np -1.70 2.16 4.83 7.53 8.73 9.27 7.02 6.52 10.81 50.42

Quarterly Results:

Jun11 Sep11 Dec11 Mar12 Jun12

Sales 48.13 63.87 57.85 48.34 72.46

O P 19.55 26.34 20.99 16.03 24.21

EBIDT 19.58 26.36 21.19 16.34 24.22

Dep 0.90 0.90 0.96 0.47 1.01

Int 0.86 0.76 2.84 0.63 1.58

Tax 6.23 8.65 6.09 3.77 7.35

N P 11.59 16.05 11.30 11.47 14.28

Strengths:

  • The company is 100% Export oriented Unit. Deprecating Rupee should be a plus.
  • Increased cropping area for adequate supply of raw material
  • Better Seeds quality
  • Product Diversification (35% revenue from new products like decaffeinated tea)
  • Capable Management.

Concerns:

  • Dependency on currency variations is a concern.

  • The main input is marigold flower and spices, all agri based, so monsoon and availability of raw material at reasonable prices.

  • Competition from China.

At current price of 34.20 with mcap=1.2sales the stock looks attractive.

Views invited.

Disc: I am tracking AVT but not invested in it.

Hi Atul,

We already have a thread on AVT started in 2011. Use the search option before starting a new thread. You can also view the discussion already done on this.

http://www.valuepickr.com/forum/not-so-hidden-gems/937826973#668789891

Cheers

Vinod

Thanks for the link Vinod.

can I request admin to move this stuff to original AVT thread.

And my appologies for any confusion.

Atul