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With a market valuation of ₹1,681.52 crore, Aditya Vision Ltd. is a small-cap business that operates in the consumer discretionary goods and services (CDGS) industry. Aditya Vision Limited is a well-known electronic retail chain in Bihar, and its shares are traded on the BSE.
The company’s product line includes more than 10,000 items, including digital devices like smartphones, laptops, and tablets, entertainment products like televisions, sound bars, home theatres, cameras, and accessories, home appliances like air conditioners, refrigerators, and washing machines, as well as cooking and kitchen appliances like air fryers, soup makers, cooktops, and dishwashers.
Aditya Vision Ltd. is one of the multibagger stocks that the Indian stock market has witnessed. Let’s look at how investors were able to grow their initial investment of ₹1 lakh to ₹67 lakh in just 3 years.
Aditya Vision Ltd. shares closed at ₹1397.95 on the BSE today, down 1.76% from their close of ₹1423.00 yesterday. 4,421 shares of the stock were exchanged in total today. The stock price has increased dramatically from ₹15.50 on December 12th, 2016 to the current market price, marking a multibagger return, an all-time high of ₹9085, and an approximately 112.90% CAGR. As a result, the investment return would now be ₹91.80 lakh if an individual had put ₹1 lakh in the stock six years prior.
In the previous five years, the stock price increased from ₹48.75 on September 21, 2017, to the current market price, yielding a multibagger return of 2704.78% and a roughly 96.24% CAGR. A ₹1 lakh investment made in the business five years ago would thus be worth₹ 28.04 lakh now. In the previous three years, the stock price has surged from ₹21 on October 1, 2019, to the current market price, producing a multibagger return of 6604.76% and an estimated CAGR of 305.19%. As a result, an investment of ₹1 lakh made in the stock three years ago would be worth ₹67.04 lakh now.
YTD, the stock has produced a multibagger return of 124.28% and has increased 63.97% over the past year. A ₹1 lakh investment placed in the business at the beginning of 2022 would have generated a ₹2.24 lakh return today.
The stock was spotted trading above the 20-day, 50-day, 100-day, and 200-day exponential moving averages but below the 5-day and 10-day EMAs as of today’s closing price (EMA).
The stock reached a 52-week high of ₹1,528.70 on January 9, 2022, and a 52-week low of ₹598.55 on April 1, 2022, meaning that the stock is now trading 8.55% below the high and 133.55% above the low at the current market price.
The business reported a promoter ownership of 73.72% for the quarter that ended in June 2022 (up by 0.04% QoQ) and a public shareholding of 26.28%.
Aditya Vision Q1FY23 Results
For the quarter ended June 2022, the company recorded net sales of ₹438.51 Cr which was ₹193.57 in the year-ago quarter, representing a YoY growth of 126%. The company’s total expenses reached ₹405.09 Cr in Q1FY23 compared to ₹181.40 Cr recorded in Q1FY22, which marks a YoY jump of 123%. The profit before tax (PBT) of the company reached ₹33.77 Cr in Q1FY23 compared to ₹12.37 recorded in the year-ago quarter, which represents a YoY surge of 172% and the company’s profit after tax (PAT) or net profit grew by 171% YoY from ₹9.83 Cr in Q1FY22 to ₹26.73 Cr in Q1FY23. The company’s earning per share (EPS) reached ₹22.22 in Q1FY23 which was ₹8.17 in the same quarter last year.
In their stock analysis, the research analysts of the brokerage company Ventura Securities Ltd stated that they anticipated AVL’s sales, EBITDA, and PAT to expand at a CAGR of 34.9%, 28.8%, and 34.6%, respectively, to INR 2,206.8/177.6/86.0 Cr during the period FY22–25. Due to the addition of new stores, we anticipate a decline in EBITDA margins from FY22 levels, but no change in net margins from FY22 levels. AVL expects its total debt to rise slightly by INR 14.5 Cr to INR 129.2 Cr even as it begins its retail expansion plan.
In the next three years, we anticipate AVL to produce INR 602.8 Cr in cash flows from operations, which would result in net debt freedom (net debt/equity at -1.0x in FY25). In the past, AVL has seen high return ratios. However, due to an increase in new shop openings, these are anticipated to reduce slightly throughout the projection period. In FY25, we forecast that the return ratios RoE/RoCE would be 32.9% and 28.8%, respectively. With a 24-month price target of INR 2,309 (32.3X FY25 profits), we begin coverage on Aditya Vision (AVL) with a BUY.
The management of AVL has been pursuing an ambitious retail growth plan during the course of FY18–22, they continued. With its 87 outlets, it now has representation in every district of Bihar and 10 districts of Jharkhand (as of Sept, 22). Moving forward, the management anticipates growing into other Hindi-speaking areas including UP, Chattisgarh, MP, and portions of West Bengal to nearly quadruple the number of stores to 155 by FY25. Due to this quick store development, we anticipate sales to increase by 34.9% CAGR to INR 2,206.8 Cr over the next two fiscal years (FY 22–25).