🔍 At a Glance
Aditya Vision is the largest electronics retail chain in Bihar, selling everything from mobile phones to refrigerators across tier-2 and tier-3 cities. With 10x profit growth in 5 years, expanding footprints, and a stock that once did 25x post-2019, it’s now gunning for a bigger piece of the national pie. But rising debt, interest costs, and promoter dilution are buzzing in the background.
1. 🧩 Introduction with Hook
Imagine Croma + D-Mart + Bihari jugaad — that’s Aditya Vision.
- From ₹2 EPS in FY21 to ₹8.2 in FY25
- 5-Year profit CAGR: 51% 😳
- ROE: 20%, OPM: 9%
- 90+ showrooms across Bihar, Jharkhand, and Eastern UP
- Now listing on NSE, doing stock split, and issued 51% special dividend on its 25th anniversary
But wait, the party’s not all JBL speakers and iPhone 15s. There’s some static too.
2. 🏪 Business Model – WTF Do They Even Do?
🛒 Think of Aditya Vision as the regional retail giant for consumer electronics:
- Products: 10,000+ SKUs — mobiles, TVs, fridges, laptops, washing machines, ACs
- Brands: Apple, Samsung, Sony, LG, Whirlpool, etc.
- Model: Brick & mortar + omnichannel (online ordering but very localized delivery model)
- Geography: Focused on Eastern India (esp. Bihar, Jharkhand, UP)
- Strategy: Store expansion in underpenetrated tier-2/3 towns, heavy festival discounts, and regional brand loyalty
🎯 Bihar > Jharkhand > Eastern UP > India?
3. 💰 Financials Overview – Profit, Margins, ROE, Growth
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 748 | 899 | 1,322 | 1,743 | 2,260 |
| Net Profit (₹ Cr) | 20 | 35 | 64 | 77 | 106 |
| EPS (₹) | 1.7 | 2.9 | 5.3 | 6.0 | 8.2 |
| ROE (%) | 28% | 23% | 25% | 22% | 20% |
| OPM (%) | 7% | 9% | 10% | 10% | 9% |
🔥 High growth, high margin retail story — but signs of margin pressure in FY25.
4. 📉 Valuation – Is It Cheap, Meh, or Crack?
- P/E: 42.9x — Premium retail stock pricing
- P/B: 7.96x
- ROE: 20.3%
- Fair Value Range: ₹310–₹375
🧮 Based on FY26E EPS of ₹9–₹10 and a P/E band of 35–40x (due to slowing growth + rising competition)
⚠️ Already richly valued for a regional player — needs national growth to justify premium.
5. 🍿 What’s Cooking – News, Triggers, Drama
- 🎉 51% special interim dividend on 25th anniversary (March 2024)
- 📈 NSE listing + share split approved (July 2024)
- 💰 Raised funds via preferential allotments in Jan-Mar 2024
- 🕵️ GST warehouse search in April 2024 — no major financial penalty yet
- 📊 FY25 results: 29% revenue growth, 38% PAT growth, steady margins
- 🏬 Store expansion continues — management hinting at moving beyond Eastern India
🎯 Signs of going national — but that comes with risk.
6. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY25 |
|---|---|
| Equity Capital | ₹13 Cr |
| Reserves | ₹571 Cr |
| Borrowings | ₹480 Cr |
| D/E Ratio | 0.84 (⚠️ Rising) |
| Fixed Assets | ₹268 Cr |
| Total Assets | ₹1,223 Cr |
🧠 Borrowings up from ₹319 Cr to ₹480 Cr in FY25 — expansion is debt-funded
7. 💸 Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | FCF (Est.) |
|---|---|---|
| FY23 | ₹18 Cr | ~₹0 Cr |
| FY24 | -₹6 Cr | Negative |
| FY25 | -₹41 Cr | Deep negative |
📉 Operating cash flow negative in FY24 & FY25 — not good for a retailer.
8. 📊 Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROCE | 19.1% |
| ROE | 20.3% |
| OPM | 9% |
| Working Capital Days | 102 |
| Inventory Days | 134 (rising) |
| CCC | 105 days (yikes) |
⚠️ Working capital strain is showing — inventories piling up = potential liquidity stress
9. 💵 P&L Breakdown – Show Me the Money
- FY25 Revenue: ₹2,260 Cr (+29.6%)
- FY25 Net Profit: ₹106 Cr (+38%)
- EPS: ₹8.20
- PAT Margin: ~4.7%
📦 Retailers run on wafer-thin margins — but Aditya Vision is improving year-on-year.
10. 🤼 Peer Comparison – Who Else in the Game?
| Company | CMP | P/E | ROE | ROCE | OPM |
|---|---|---|---|---|---|
| Aditya Vision | ₹361 | 42.9x | 20.3% | 19.1% | 9% |
| Trent | ₹5,456 | 135x | 30.1% | 30.7% | 16.4% |
| Go Fashion | ₹903 | 52x | 14.4% | 14.9% | 31.6% |
| V2 Retail | ₹1,924 | 92x | 23.2% | 16.6% | 13.7% |
💡 Aditya is cheaper than most fashion/retail peers, but it’s no national brand… yet.
11. 🧮 Miscellaneous – Shareholding, Promoters
- Promoters: 53.23% (down from 73% in 2022) ⚠️
- FIIs: 16.6% — big jump from 0.5% in 2023
- DIIs: 9.87%
- Retail Holding: ~20%
- Shareholders: 26,552 (from 3,300 in 2022 🤯)
📉 Promoter dilution = institutional confidence ✅
But why the constant dilution? Expansion funding? Or early cash-out?
12. 🧑⚖️ EduInvesting Verdict™
Aditya Vision is an Eastern India retail beast with the growth record to prove it.
✅ 50%+ profit CAGR (5Y)
✅ Strong ROE/ROCE
✅ Loyal regional base
⚠️ Rising debt, promoter dilution, inventory bulge
FV Range: ₹310–₹375
🧠 Think of this as the D-Mart of gadgets — but stuck in one state. If it nails the national rollout, this could be India’s next big retail stock. If not, it might stay a local hero forever.
✍️ Written by Prashant | 📅 July 6, 2025
Tags: Aditya Vision, Retail Stock, Consumer Electronics, Bihar Retailer, NSE Listing, Multibagger, SME to Mainboard, ROE, Profit Growth
