AVT Natural Products Limited (AVTNPL) AI Stock Analysis

• Market Cap: ₹9.16B
• Dividend Yield: 1.05%
• Average Volume (3M): 7.24K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 1.11
• Revenue Growth: 23.11%
• EPS Growth: 34.46%
• Country: IN
• Employees: 315
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Chemicals - Specialty
• EPS (TTM): 1.14
• Shares Outstanding: 152,284,000
• 10 Day Avg. Volume: 2,619
• 30 Day Avg. Volume: 7,238
• PEG Ratio: -1.87
• Price to Book (P/B): 1.68
• Price to Sales (P/S): 1.53
• P/FCF Ratio: -16.81
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ₹65.00 ▼(-1.92% Downside)
• Action: Reiterated Date: 10/31/25
• Date: Action: Reiterated 10/31/25

The overall stock score reflects a mixed financial performance with strong balance sheet stability but concerns over profitability and cash flow. Technical indicators suggest neutral to bearish momentum, while the valuation is fair. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Strong balance sheet / low leverage

A low debt-to-equity profile provides durable financial stability, allowing the company to absorb cyclical downturns, fund working capital for export contracts, and invest selectively in capacity or product development without immediate refinancing pressure, supporting long-term resilience.

Consistent revenue growth

Sustained top-line growth indicates persistent demand for its plant-based ingredients and successful market penetration. For a B2B ingredients supplier, steady revenue growth supports scale advantages, smoother capacity planning, and long-term customer relationships across food, beverage and nutraceutical markets.

Specialized tea-derived product portfolio

Focus on tea-derived and botanical extracts is a structural competitive asset: technical know-how, regulatory familiarity and targeted product formulations create higher switching costs and repeat B2B demand versus generic commodity suppliers, supporting durable margins if managed.

Negative Factors

Declining profit margins

Margin compression reduces the company's ability to generate retained earnings and invest in R&D or capacity. If driven by higher input costs or pricing pressure from customers, sustained margin decline can erode competitive flexibility and make long-term growth more capital intensive.

Weak cash generation / negative free cash flow

Negative FCF and an operating cash flow to net income shortfall constrain funding for capex and seasonal working capital. Even with low leverage, persistent weak cash conversion increases reliance on external financing or equity, raising execution risk for strategic investments.

Decreasing return on equity

A falling ROE signals the business is generating lower returns on invested capital, which can result from margin erosion or inefficient asset use. Over time this can limit reinvestment capacity and make it harder to justify capital allocation versus peers in specialty ingredients.

AVT Natural Products Limited Business Overview & Revenue Model

Company Description

AVT Natural Products Limited, together with its subsidiaries, engages in the production, trading, and distribution of oleoresins and value-added teas in India. The company offers marigold extracts for eye care, food coloring, and poultry pigmentation; spice oleoresin and oils for food coloring and flavoring; value added teas such as de-caffeinated and instant teas; rosemary extract; and animal nutrition products. It serves food and beverage, cosmetics and personal care, animal nutrition and health, and crop science industries. The company also exports its products. AVT Natural Products Limited was incorporated in 1986 and is based in Chennai, India.

How the Company Makes Money

AVTNPL makes money primarily by manufacturing natural plant-based extracts and selling them to business customers (B2B) in domestic and international markets. Its core revenue stream is the sale of tea-based ingredients—such as tea extracts and purified components like polyphenols/catechins—supplied as functional/active ingredients that customers incorporate into finished products (e.g., beverages, dietary supplements, and functional foods). Revenue is generally realized per shipment/contract based on product type, concentration/specification, and order volume, and is influenced by export demand and pricing in global ingredients markets. Additional revenue streams may include the sale of other botanical/natural extracts and ingredient variants (e.g., decaffeinated formats), but specific product-level or customer-level revenue splits are null. Information on significant partnerships, long-term offtake agreements, or material joint ventures contributing to earnings is null.

AVT Natural Products Limited Financial Statement Overview

Summary

AVT Natural Products Limited shows positive revenue growth, but declining profit margins and operational efficiencies are concerning. The strong balance sheet with low leverage supports stability, but cash flow challenges could impact liquidity and investment potential.

Income Statement

The company has shown a steady increase in its total revenue, with a 7.5% increase from 2024 to 2025. However, the gross profit margin has decreased from 2024 to 2025, indicating increased cost of goods sold. The net profit margin has slightly decreased, reflecting a reduction in profitability. EBIT and EBITDA margins have also declined, suggesting operational challenges. Despite the revenue growth, pressure on profit margins and operating efficiency are areas of concern.

Balance Sheet

The company has a strong equity position, with stockholders' equity significantly higher than total debt, resulting in a low debt-to-equity ratio. This indicates solid financial stability and a low level of financial risk. The equity ratio is strong, showing that a substantial portion of the company's assets are financed by equity rather than debt. Return on equity, however, has decreased compared to previous years, which might indicate reduced profitability on shareholders' investments.

Cash Flow

The company experienced a negative free cash flow in 2025, a significant decline from the previous year's positive free cash flow, indicating potential liquidity challenges. The operating cash flow to net income ratio is negative, highlighting that the company is not generating sufficient cash from operations to cover its net income. This poses potential risks for future financial flexibility and investment capacity.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	6.22B	5.56B	5.17B	5.82B	5.54B	4.85B
Gross Profit	3.21B	2.19B	1.29B	1.69B	2.63B	2.16B
EBITDA	1.01B	864.86M	919.08M	1.21B	1.14B	780.93M
Net Income	613.69M	482.27M	532.88M	773.99M	728.50M	452.91M
Balance Sheet
Total Assets	7.92B	7.47B	5.98B	5.24B	4.49B	4.26B
Cash, Cash Equivalents and Short-Term Investments	1.60B	1.73B	1.52B	785.55M	426.35M	223.79M
Total Debt	1.00B	1.13B	425.97M	370.01M	251.93M	535.74M
Total Liabilities	2.69B	2.41B	1.29B	932.33M	800.16M	1.15B
Stockholders Equity	5.23B	5.06B	4.70B	4.30B	3.69B	3.10B
Cash Flow
Free Cash Flow	-14.08M	-506.98M	809.46M	430.75M	649.17M	24.28M
Operating Cash Flow	89.27M	-414.48M	985.16M	511.75M	743.62M	76.37M
Investing Cash Flow	148.83M	-95.92M	-730.48M	-368.17M	-289.07M	-43.76M
Financing Cash Flow	-185.90M	591.82M	-201.79M	-85.01M	-449.59M	-60.06M

AVT Natural Products Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 66.27
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AVTNPL, the sentiment is Negative. The current price of 66.27 is above the 20-day moving average (MA) of 63.43, above the 50-day MA of 64.96, and below the 200-day MA of 68.18, indicating a bearish trend. The MACD of -1.47 indicates Positive momentum. The RSI at 39.50 is Neutral, neither overbought nor oversold. The STOCH value of 45.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:AVTNPL.

AVT Natural Products Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHREEPUSHK	68 Neutral	₹9.93B	17.66	―	0.52%	28.67%	50.12%
AVTNPL	65 Neutral	₹9.16B	14.51	―	1.05%	23.11%	34.46%
BHAGERIA	63 Neutral	₹6.44B	17.61	―	0.81%	33.39%	85.08%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
BODALCHEM	60 Neutral	₹5.45B	697.51	―	―	15.56%	2114.71%
JAYAGROGN	60 Neutral	₹8.24B	22.24	―	1.23%	0.69%	-7.54%
MANALIPETC	49 Neutral	₹7.91B	3.95	―	0.82%	-2.41%	178.19%