AVT Natural Products Downgraded to 'Sell' by MarketsMOJO Due to Negative Results

AVT Natural Products, a smallcap company in the refined oil and vanaspati industry, has recently been downgraded to a 'Sell' by MarketsMOJO on August 26, 2024. This decision was based on negative results in the June quarter, with a decrease of -28.6% in PAT(Q) at Rs 5.96 crore and the lowest OPERATING PROFIT TO INTEREST (Q) at 5.76 times. Additionally, PBDIT(Q) also saw a decline, reaching its lowest at Rs 7.84 crore.
Despite being a smallcap company, AVT Natural Products has not gained much interest from domestic mutual funds, with them holding only 0% of the company. This could indicate that they are not comfortable with the current price or the business itself, as they have the capability to conduct thorough research on companies.

In the past year, the stock has underperformed the market, generating a return of only 13.88% compared to the market's (BSE 500) return of 39.36%. The company also has a low Debt to Equity ratio (avg) at 0.08 times.

The technical trend for AVT Natural Products is currently sideways, indicating no clear price momentum. This trend has worsened since August 26, 2024, when it was mildly bullish, and has resulted in a -1.59% return.

However, the company does have a Very Attractive valuation with a ROE of 11.3 and a 2.9 Price to Book Value. It is currently trading at a discount compared to its average historical valuations. Despite this, its profits have fallen by -16.4% in the past year, while the stock has generated a return of 13.88%.

In conclusion, based on the recent downgrade and negative results, it may be wise to consider selling AVT Natural Products stock. However, the company's attractive valuation and low Debt to Equity ratio could make it a potential investment opportunity for the future.