20,500% return! Shares of this Patna-based retailer turns Rs 1 lakh to Rs 2 crore in 5 years. Too late to buy now?
Aditya Vision
, a modest consumer electronics retailer based in Patna, have delivered an astounding 20,483% return over the past five years, transforming a humble Rs 1 lakh investment into a staggering Rs 2 crore fortune.
After slipping into bear market in 2025 amid profit booking and muted consumer sentiments, the multibagger smallcap stock is once again seeing fresh momentum following its Q1 results that defied a broader industry slump. The company, which sells durables like air conditioners, refrigerators and washing machines across Uttar Pradesh, Bihar and Jharkhand, is now seeing bulls returning to the counter despite the shares losing over 18% of their value in 2025.
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Aditya Vision (AVL) shares rallied over 8% on Monday to Rs 424 after brokerages declared the company's performance was "unfazed" by the rain storms that battered Q1 demand across the consumer durables sector.
Emkay Global
's Devanshu Bansal delivered the most dramatic endorsement, upgrading the stock to BUY from Add while hiking the target price by a hefty 22% to Rs 550. "We upgrade Aditya Vision to BUY from Add, while increasing the target price by 22% to Rs 550 (from Rs 450), following a 14%/3% increase in our target price multiple/estimates," Bansal said, reversing his earlier cautionary stance from May.
The upgrade comes as a surprise reversal after Emkay had downgraded the stock in May over concerns about margin risks from inflated AC inventory amid unseasonal rains. "However, AVL has surprised us with a better margin (flat YoY; 30bps beat) and inventory management (down by Rs1.5bn; Rs30mn per store at Q1-end)," Bansal noted.
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Aditya Vision has built its empire by strategically targeting the underpenetrated Hindi heartland. As the largest electronics retailer in Jharkhand with over 50% market share in Bihar, its business model thrives on a "cluster-based" expansion across these states and Uttar Pradesh. The company sources 85% of its products directly from over 100 brands, allowing for higher margins without resorting to private labels.
ICICI Securities maintained its BUY rating with a target price of Rs 450, emphasizing the long-term opportunity. "We believe that low white goods penetration, rising premiumisation and supportive macro factors in UP and Bihar will provide strong growth tailwinds to AVL," the brokerage stated.
What makes Aditya Vision's story particularly compelling is how it bucked the broader industry trend in Q1. While most durable goods manufacturers saw their toplines decline 15-30%, AVL reported a 6% increase in revenue, a 2% beat over estimates.
Following unseasonal rainfall this summer and weak demand, AVL recorded negative 4% SSSG (same store sales growth). However, the company anticipates the upcoming festive season to turn SSSG-positive.
Despite challenging conditions with unusually high rainfall and colder temperatures causing same-store sales growth to dip 4%, the company managed to maintain healthy margins through what analysts called "conscious cost-savings and a reduction in discretionary spends."
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The company's aggressive expansion story continues unabated. AVL added 4 stores in Q1 and 3 more in July, taking its total count to 182 stores. Management expects to add 25-30 stores in FY26, putting it on track to cross the 200-store milestone.
"The company is on track to open 25 stores during FY26 and is on track to cross 200 stores in FY26. As the new stores mature, we believe the company can deliver 20% Sales/PAT CAGR% over next 2 years," said Sunny Agrawal, Head - Fundamental Research at SBI Securities.
He remains constructive on the stock on the back of comfortable valuations.
The stock's journey from obscurity to stardom began when it listed on the BSE SME platform in 2016 before migrating to the mainboard in January 2021. The company has since become a poster child for how regional players can capture massive value in India's underpenetrated consumer durables market.
ICICI Securities highlighted the structural opportunity: "The penetration of white goods and durable products is significantly lower in key regions such as Bihar, Jharkhand, and Uttar Pradesh. Additionally, there are only a few national chains operating in these areas, and the adoption of e-commerce for white goods and durables is also comparatively limited."
Despite the recent volatility, brokerages remain convinced about the company's medium-term prospects. ICICI Securities models AVL to report revenue/PAT CAGRs of 17.3%/19.2% over FY25-27E, with return on capital employed expected to improve to 14.4% in FY27E from 13.4% in FY25.
Even Nuvama, while trimming estimates, maintained its BUY rating: "Building in the weakness seen in Q1, we are revising FY26E/27E revenue by -8.7%/-5.3% and PAT by -23.7%/-15.3%. This along with a valuation rollover to Q1FY28E yields a revised target price of INR503. We maintain 'BUY' on the stock given the recent correction and comfortable valuation."
The company reported revenue/EBITDA/PAT growth of 5.8%/5.4%/3.9% YoY respectively in Q1FY26, with gross margins expanding 11 basis points even as EBITDA margins remained flat year-on-year.
For investors wondering if they've missed the bus on this 206x multibagger, the brokerage consensus suggests the journey may still have several stations left.
(
Disclaimer
: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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