"Is AVG Logistics (NSE:AVG) the Next Hot Stock to Watch? Find Out Now!"

 The excitement of investing in a company that is able to turn its fortunes around is a huge attraction for some speculators, so even companies with no revenue, profits and a record of failure, can find investors. 

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But the reality is that when a company loses money every year, over a long period of time, investors will usually take part of the losses. Loss-making companies can act like a sponge for capital - so investors should be careful not to waste money after a loss.

So if this idea of ​​high risk and high reward doesn't suit you, you might be more interested in a profitable, growing company, like AVG Logistics (NSE:AVG).

Even if the company is fairly valued by the market, investors will agree that generating consistent profits will continue to provide AVG Logistics with the means to add long-term value for shareholders.

How Fast Will AVG Logistics Grow Its Earnings Per Share?

In business, profit is the key to success; and share prices tend to reflect earnings per share (EPS) performance.

So for many novice investors, an increase in EPS is considered a good sign. Credit must be given as AVG Logistics grew its EPS from ₹2.52 to ₹11.01, in a short year. When you see revenue growing so quickly, it often means good things in the future for the company.

It's often useful to look at earnings before interest and taxes (EBIT) margins, as well as revenue growth, to get a sense of the quality of a company's growth. AVG Logistics shareholders can take comfort in the fact that EBIT margins increased from 7.5% to 11%, and revenues increased. Ticking both boxes is a sign of good growth, we think.

Are AVG Logistics Insiders Aligned with All Shareholders?

It is said that there is no smoke without fire. For investors, insider buying is often an indication of which stocks could fuel the market. 

This is because insider buying often indicates that people close to the company have confidence that the share price will perform well. However, small purchases do not always convey confidence, and insiders do not always get it right.

Insiders bought and sold AVG Logistics shares in the last year, but the good news is they spent ₹2.5m more buying than net selling. So, overall, insider transactions are quite encouraging.

We also note that Non-Executive Director, Apurva Chamaria, who made the largest single acquisition, paid ₹2.6 million for the shares at about ₹265 each.

And insider buying isn't the only sign of alignment between shareholders and the board, as AVG Logistics insiders own more than a third of the company. 

In fact, they own 55% of the company, so they will experience the same excitement and challenges that ordinary shareholders experience.

This should be seen as a good thing, as it means insiders have a vested interest in providing the best results for shareholders. To put that in perspective, insider ownership in the business is worth ₹3.6b at the current share price.

Nothing to sneeze at!

Is AVG Logistics Worth Watching?

AVG Logistics' earnings per share growth has increased at a significant rate. What's more, insiders own a significant stake in the company and have been buying more shares.

These factors seem to indicate the company's potential and that it has reached an inflection point. We recommend AVG Logistics be at the top of your watch list. However, you should still learn about the 4 warning signs we spotted with AVG Logistics (including 1 which is a bit unpleasant)

There are many other companies that have insiders buying shares. So, if you like the sound of AVG Logistics, you might like this select collection of companies in IN that have attractive valuations in addition to insider buying in the last three months.

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