Shares of a speciality retailer escalated by 12.3 percent on Monday’s early trades to reach a 52-week high of ₹ 2465.00 apiece on the Bombay Stock Exchange (BSE). This happened after the company announced stellar results for the first quarter of the financial year 2023-24, and after ace investor Ashish Kacholia increased his stake in the company. At 11:50 AM, its shares were trading at ₹ 2349.35 apiece.
According to the shareholding pattern of Aditya Vision Ltd, for the April to June quarter of 2023 (Q1FY24), Ashish Kacholia holds 2,39,506 shares or a 1.99 percent stake in the company. This is an increase of 0.88 percent as compared to 1,33,053 shares or a 1.11 percent stake held by the investor in the previous quarter (Q4FY23- January to March 2023).
Aditya Vision is a multi-brand electronics retail company. It is engaged in the retail business of electronic products such as consumer electronics, home appliances, mobility, and information technology products.
The company’s revenue from operations increased by 46.23 percent to ₹ 641.23 crores in Q1FY24, as compared to ₹ 438.51 crore in the same period last year (Q1FY23). Its profit increased by 41.26 percent to ₹ 37.42 crores in Q1FY24, as compared to ₹ 26.49 crores in Q1FY23.
In the past year, the BSE listed stock gained 218.68 percent as its share price increased from ₹ 773.50 apiece to ₹ 2,465.00. However, in the past three years, the company’s shares gained a whopping 11866 percent to deliver multibagger returns, as its share price increased from ₹ 20.60 to ₹ 2,465.00 apiece. Therefore, if an investor had invested ₹ 1 lakh in the company’s shares a year ago, the value of their holdings would have been ₹ 3.18 lakhs today. However, if the same investment was made three years ago, the value of their holdings would have been a massive ₹ 1.19 crore!
With a market capitalization of ₹ 2,640 crores, Aditya Vision is a small-cap company. It has a high return on equity of 59.67 percent but a high debt-to-equity ratio of 3.08. Its shares were trading at a price-to-earnings ratio (P/E) of 41.15, which is higher than the industry P/E of 28.02, indicating that the stock might be overvalued as compared to its peers.
The company’s promoters hold a 67.59 percent stake in it followed by retail investors with 31.87 percent and foreign institutions with 0.54 percent.
Written by Simran Bafna
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