Stock Market: Bihar retailer delivers multibagger, over 70 times return in 3-year

0
Spread the love

By S Jha

New Delhi, April 24: Bihar has an image of the labour supplier to India and the Gulf countries. Bihar is still counted among the BIMARU states. Bihar after partition which gave industries to Jharkhand was left with sick sugar mills and a few NTPC power plants.

The Bihar government is now desperately seeking to attract investments, offering readily available space for plug and play works. Mostly small players in cottage industries are coming for the startup scheme of the state government.

But one retail chain delivered over 70 times return to the investors in a flat three-year term. At the peak of the price of the share of the company, the return in fact was over 80 times.

It’s also the only listed retail chain of the electronic goods. The company is a rival of Croma of Tata and Reliance Digital. Within a short span of time, this electronic retail chain has opened swanky showrooms in various cities of Bihar.

In July 2020, the share price of the Bihar-based electronic retail chain was quoting at Rs 20 on the Bombay Stock Exchange. On Monday, the scrip closed at Rs 1471. The peak price of the share of the company was Rs 1692 in October last year.

“The company has delivered good profit growth of 83.2 per cent CAGR over last five years. It has a good return on equity (ROE) track record averaging 49.4 per cent in the last three years. The company has been maintaining a healthy dividend payout of 25 per cent. It has a median sales growth of 27 per cent of last 10 years,” noted Screener.in.

Aditya Vision has stores in Patna and several other cities, with the management claiming that they would double the count of stores in the near future. This Bihar-based electronic mart is on a roller coaster drive, maintaining a healthy margin, which is being richly rewarded by the investors.

The company was incorporated in 1999, and it’s the only electronic retail company to be listed on BSE. The earning per share in March 2022 was Rs 17, which zoomed to Rs 29.33 in March 2023. It has now forayed in Uttar Pradesh.

(Note: This is not a buy or sale advice; one must consult financial advisor before making investment decision, and also the wisdom says that one should not chase something which has flown away in a short span of time).

About The Author

Leave a Reply

Your email address will not be published. Required fields are marked *