Home / Markets / Stock Markets15 to 1397: Multibagger stock turns 1 lakh to 67 lakh in 3 years: Should you buy?

Aditya Vision Ltd is a small cap company having a market cap of 1,681.52 Crore operating in the consumer discretionary goods & services (CDGS) sector. In Bihar, Aditya Vision Limited is a leading electronic retail chain and the shares of the company are listed on the BSE. More than 10,000 products, from digital gadgets like mobile phones, laptops, and tablets to entertainment solutions like televisions, sound bars, home theatres, cameras, and accessories, to home appliances like air conditioners, refrigerators, and washing machines, as well as cooking and kitchen appliances like air fryers, soup makers, cooktops, and dishwashers, are available in the business portfolio of the company. 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.

Share price history of Aditya Vision

Today's BSE closing price for Aditya Vision Ltd shares was 1397.95 a piece, down 1.76% from yesterday's close of 1423.00. The stock had a total volume of 4,421 shares traded today. From 15.50 on December 12th, 2016 to the present market price, the stock price has gone up tremendously, logging a multibagger return, an all-time high of 9080.65%, and an approximate CAGR of 112.90%. Therefore, if an investor had invested 1 lakh on the stock six years ago, then the investment return would now have been 91.80 lakh. 

The stock price climbed from 48.75 on September 21, 2017, to the current market price during the past five years, resulting in a multibagger return of 2704.78% and an approximate CAGR of 96.24%. Therefore, a 1 lakh investment placed in the company five years ago would today be worth 28.04 lakh. The stock price soared from 21 on October 1, 2019, to the current market price during the past three years, resulting in a multibagger return of 6604.76% and an approximate CAGR of 305.19%. Consequently, a 1 lakh investment placed in the stock three years ago would today be worth 67.04 lakh. 

The stock has appreciated 63.97% during the past year, and YTD, it has generated a multibagger return of 124.28%. Therefore, an investment of 1 lakh made in the company at the beginning of the year 2022 would have yielded a return of 2.24 lakh today. As of today's closing price the stock was seen trading below the 5 days, and 10 days EMA but above the 20 days, 50 days, 100 days and 200 days Exponential Moving Average (EMA). The stock had touched a 52-week-high of 1,528.70 on (01/09/2022) and a 52-week-low of 598.55 on (04/01/2022), indicating that at the current market price the stock is trading 8.55% below the high and 133.55% above the low. For the quarter ended June 2022, the company recorded a promoter shareholding of 73.72% (up by 0.04% QoQ) and a public shareholding of 26.28%.

Q1FY23 results of Aditya Vision

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.

Should you buy the shares of Aditya Vision Ltd (AVL)?

The research analysts of the broking firm Ventura Securities Ltd have said in their stock report that “We expect AVL revenues/EBITDA/PAT to grow at a CAGR of 34.9%/28.8%/34.6% to INR 2,206.8/177.6/86.0 Cr over the period FY22-25. We expect EBITDA margins to deteriorate from FY22 levels owing to new store expansion while net margins are expected to remain the same at FY22 levels. Total debt of AVL is expected to increase only by INR 14.5 Cr to INR 129.2 Cr even though the company embarks on its store expansion strategy. We expect AVL to generate INR 602.8 Cr in cash flows from operations over the next 3 years leading to a net debt-free status (net debt/equity at -1.0x in FY25). AVL has enjoyed high return ratios historically. However, these are expected to moderate slightly over the forecast period mainly due to acceleration in new store openings. We project the return ratios RoE/RoCE at 32.9%/28.8% respectively in FY25. We initiate coverage on AVL with a BUY for a 24-month price objective of INR 2,309 (32.3X FY25 earnings)."

They further added that “Over FY18-22, the management of AVL has been pursuing an aggressive store expansion strategy. Now it has representation in every district of Bihar and 10 districts of Jharkhand with its 87 stores (as of Sept, 22). Going forward, the management expects to nearly double the number of stores to 155 by FY25 expanding into other states of the Hindi heartland such as UP, Chattisgarh, MP and parts of West Bengal. On the back of this rapid store expansion, we expect revenues to grow at 34.9% CAGR to INR 2,206.8 Cr over FY 22-25."

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.



Vipul Das

Vipul Das is a Digital Business Content Producer at Livemint. He previously worked for Goodreturns.in (OneIndia News) and has over 5 years of expertise in the finance and business sector. Stocks, mutual funds, personal finance, tax, and banking are among his specialties, and he is a professional in industry research and business reporting. He received his bachelor's degree from Dr. CV Raman University and also have completed Diploma in Journalism and Mass Communication (DJMC).
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