Stock Pro

Ashish Kacholia Portfolio: Veteran investor buys stake in Aditya Vision, shares rise tremendously

Buzzing Stocks: Shares of Bihar-headquartered electronics retail chain Aditya Vision (Aditya Vision) remain in discussion today on Monday, 12 December. Veteran investor Ashish Kacholia had bought 0.83 per cent stake in the company through an open market transaction on Friday, 9 December. Following the news, Aditya Vision's stock jumped nearly 5% on Friday and touched a market cap of Rs 2,000 crore. This trend of rise in the shares of Aditya Vision continued on December 12 as well and at around 2 pm, the stock was trading at Rs 1,714 on BSE with a gain of 3.4.

At one point during the day's trading, shares of Aditya Vision had gone up to Rs 1,845 with a jump of about 11%. Aditya Vision shares have gained about 172% since the beginning of this year.

Aditya Vision operates electronics retail chain mainly in Bihar and Jharkhand. The company currently has a total of 91 stores, while their number was 79 by the end of FY2022. In its retail showroom, users get products of brands like LG, Sony and Samsung under one roof.

Yashovardhan Sinha, Managing Director, Aditya Vision recently said after the September quarter results, “We have opened 12 new stores in this financial year so far and 6 stores are under construction. Shows our commitment to strengthen our retail presence in the target market."

That's why Aditya Vision is confident of fast growth

The penetration of the consumer electronics market is still low in the Indian markets. Especially in Tier 3 and Tier 4 cities. Sinha said, “Even in small cities and towns, the power situation has improved a lot in the recent past. Due to this, there is immense growth potential and strong demand in the consumer electronics product business.

The company will open a total of 150 stores by the end of 2025.

Aditya Vision was also able to double its cash and cash equivalents in the September quarter. The company's cash and cash equivalents stood at Rs 28.71 crore in April, which increased to Rs 59.40 crore at the end of the September quarter.

Aditya Vision aims to open a total of 150 stores by the end of FY2025. The company's stock is currently trading at a P/E of 35.8, which is much lower than the sector average PE of 64.42.

Share was listed at Rs 15 in 2016

Shares of Aditya Vision were listed through SME IPO in the year 2016 on BSE at a price of Rs.15. Since then the stock has seen a tremendous rally. The company had reported nearly 3 times increase in its profit to reach Rs 26.7 crore in the first quarter of this financial year, which was only Rs 8 crore in the same quarter of the previous financial year. After this, the share price of Aditya Vision had reached Rs 1,000. Promoters hold around 70 per cent in Aditya Vision and its free float market cap is just Rs 453 crore.

Disclaimer: The information provided here is being given for information only. It is important to mention here that investment in the market is subject to market risks. Always take expert advice before investing money as an investor. StockPro never advises anyone to invest money here.

Request A Call Back

Fill Up The Form and we will call you