22,000% return in 5 years! This Kacholia's smallcap multibagger will turn ex-date for stock split today

Aditya Vision Ltd, which has seasoned investor Ashish Kacholia as shareholder, will see its stock split into shares of face value of Re 1 each today from face value of Rs 10 earlier. The multibagger stock has delivered a whopping 22,039 per cent return in the past five years. Kacholia, who owns over Rs 100 crore worth Aditya Vision shares, has been an investor in the Patna-based consumer electronics retail chain at least since March quarter of 2023.

Today, Aditya Vision will also determine entitlement of shareholders of the company for the purpose of sub-division of its shares, such that one share having face value of Rs 10 each, fully paid-up, will be subdivided into 10 shares having face value of Re 1 each, fully paid-up. The stock split was approved by the shareholders of the company at the Annual General Meeting held on Friday, August 2.

The Aditya Vision 's management has forecast 20–25 per cent revenue CAGR guidance for the next three to five years. It is looking to expand into Tier II and III cities, where competition is minimal, analysts noted. "This places it an advantageous position in emerging markets. UP, which is undergoing a rapid transformation, represents a significant growth opportunity for Aditya Vision. In the long-term, it aims to touch 500 stores in the Hindi heartland.

"Expansion of its store network and selective foray into new markets offers a significant long-term growth potential. As most newly opened stores are yet to mature, the benefits of scale are expected to become more pronounced over time. We expect a revenue/Ebitda/PAT CAGR of 27 per cent/29 per cent/43 per cent over FY24–26E, with a steady Ebitda margin between 9.6–9.8 per cent. Given the consistent earnings visibility and better-than-expected performance, we are revising our FY25/FY26 earnings estimates upwards by 11 per cent/18 per cent. We maintain ‘BUY’ with a revised target price of Rs 5,536," Nuvama said on July 29.

Aditya Vision has 100-plus outlets spread across Bihar, Jharkhand, and Uttar Pradesh. For the June quarter, Aditya Vision posted an inline sales growth of 39 per cent but its PAT came at a 4 per cent miss due to higher growth investment, Emkay Global said. Kacholia cut his stake in the company to 204,011 shares or 1.59 per cent in the June quarter from 239,506 shares or 1.87 per cent in the March quarter. 

"The Q1 show is top-notch, with Aditya Vision also having outperformed peers, thus reflecting deep under-penetration in the Hindi Heartland. Q2TD trends remain encouraging, granting us confidence on 35 per cent growth in FY25E. Positively, thrust on premiumization, financing, and store expansion is aiding faster-than-expected ramp-up of UP (new market) for AVL, adding 8 per cent to Q1 topline within 12-15M of entry. Aditya Vision maintains its store addition target of 25-30 in FY25 and crosses the 200-store mark by FY26," it said.

Better cash flows partially offset the impact of higher growth investments, leading to a 2-3 per cent cut to earnings estimate, it said. Emkay maintained 'Buy' on Aditya Vision with target price of Rs 5,800 per share.

On Monday, the stock closed at Rs 4,926 on BSE, up 1.68 per cent.