Monday, October 24, 2011

AVT Natural - already a 4x Multibagger since past six months

Already a 4x Multibagger since past six months. This is my second post on AVT Natural. ( here is my first post  - AVT Natural - Don`t act in haste and repent at leisure )
Cmp 416 ( + 5% ) . Market Cap 316 crores.Just 15% below its lifetime / all time high of 490 made in Aug 2011.
I would rate this among my current top 10 investment buys with at least 40- 50% upside or 600- 620
AVT Natural - continues its blowout results in Sep 2011 Q2 FY 12.
  • Sales up 2x to 64 crores YoY.
  • EBIDTA Margin 41% vs 20%
  • PAT up 5x to 16 crores.
H1 Sep 2011 results vs H1 Last year.
  • Sales up 2.3x to 112 crores YoY.
  • EBIDTA Margin 40.9 % vs 6.4%
  • PAT up 14x to 28 crores. 
Past results details here
Management  has given the key reason of the recent all time high EBITDA margins to the favorable price enjoyed for its leading export product - Marigold Oleoresins.
On H1 FY12 Annualized basis, AVT Natural Products is trading at EV / EBITDA of 4x to 5x , PE of 6x to 7x and Price to Sales of 1.4x. ROE would jump from 20% last year to 50% plus. Thus there is definitely room for further re - rating. A 50% upside target of 620 would mean EV / E of 8x . PE of 10x and PSR of 2x. Price chart of AVT Natural here
Disclosure  - Initial round exposure holding. Entered ~3 months ago. Plan to buy more.

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