The shares of this small-cap company hit a 52-week high of Rs 3,630.00 apiece after the brokerage recommended a ‘buy’ rating.
With a market capitalization of Rs 4,276.13 Crores. Aditya Vision Ltd, On Wednesday, The shares were trading at Rs 3,555.00 a share, an increase of 0.13 percent from the previous closing price.
As per the brokerage recommendation, Emkay Global Financial gave Aditya Vision Ltd. a target price of Rs 5,000 representing a 40% increase from Wednesday’s price of Rs 3,549.85 apiece.
Here are the reasons, AVL’s payback period of under 3 years is ‘better than the best’ in other retail formats. The Board expects AVL to post a strong, revenue-led EBITDA CAGR of over 30% during FY23-27E and in the mid-teens over FY27-35E. Maturing of new stores should lead to better asset sweating and allied ROIC gains (1,000bps+ in FY23-27E).
Looking into the company’s performance revenue increased by 20 percent from Rs 259.6 Crore in Q2FY23 to Rs 313.13 Crore in Q2FY24. During the same period, net profit increased by 15 percent from Rs 11.35 crore to Rs 9.63 crore.
Ashish Kacholia holds 2,39,506 shares, i.e. equivalent to 1.99 percent of the company as of the September quarter of 2023.
Over 10,000 products are distributed and sold by Aditya Vision Ltd. The company sells consumer durable and electronic goods under the names of more than 100 well-known Indian and foreign brands. From June 30, 2023, AVL opened eight showrooms in Uttar Pradesh. expanded the chain of stores throughout Bihar and Jharkhand, bringing the total number of stores to 117 as of June 30, 2023.
The Company expanded its outlet count from 79 to 105 in the reviewed fiscal year. AVL expanded its reach by relocating its district headquarters to Bihar’s subdivisions, which improved penetration. The revenues per square foot experienced an approximate increase from Rs 34,000 in the previous year to Rs 40,000 in the reviewed year.
Aditya Vision Ltd is a service-oriented electronic retail chain in Bihar that deals in all types of consumer durables. It is also involved in the trading of electronic items.
Written by:- Abhishek Singh
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