Review By on November 26, 2016
Aditya Vision Ltd. (AVL) is engaged into retail business of consumer electronics, home appliances, camera, cam recorders, and mobile phones. AVL is a multi-brand, multi-product retail chain which stocks an entire range of consumer durables, right from Air conditioners, TVs, Washing Machines, Refrigerators, Microwaves, Home Theatre Systems, Mobile Phones, small home appliances and many more. It offers some of the popular brands such as LG, Samsung, Sony, Daikin, Videocon, Panasonic, Onida, Nikon etc. Having started its business with a small store in Patna, Bihar, now it has evolved into one of Patna’s leading chain of consumer durables and electronic goods stores. At present it has 19 stores/outlets across Bihar, India under the brand name of “Aditya Vision”.
To meet working capital requirements and raise general corpus funds, the company is coming out with a maiden IPO of 3840000 equity share of Rs. 10 each at a fixed price of Rs. 15 per share. Minimum application is to be made for 8000 shares and in multiples thereon, thereafter. Issue opens for subscription on 28.11.16 and will close on05.12.16. Issue is solely managed by Guiness Corporate Advisors Pvt Ltd and Cameo Corporate Services Ltd is the registrar to the issue. Post allotment, shares will be listed on BSE SME. After initial equity issue at par during 2000-2007 and at par rights issue in March 2016, it issued few shares at a price of Rs. 15 to Rs. 30 per share between 2008- 2013. It has also issued bonus shares in the ratio of 2 for 1 in March 2016. Post IPO its current paid up equity of Rs. 10.27 crore will stand enhanced to Rs. 14.11 crore.
On performance front, the company has posted turnover/net profit of Rs. 124.62 cr. / Rs. 0.73 cr. (FY14), Rs. 179.18 cr. / Rs. 1.13 cr. (FY15) and Rs. 240.71 cr. / Rs. 1.18 cr. (FY16). For first quarter of the current fiscal, it has earned net profit of Rs. 0.54 cr. on a turnover of Rs. 113.11 cr. If we annualize these earnings and attribute on fully expanded equity post IPO then asking price is at a P/E of 9 plus that appears to be reasonable. However, many mega brands are not doing up to the mark in retail chains and company is likely to face competition going forward. As per prospectus, the company has no listed peers to compare with.
On merchant banker’s front, this is the 25th mandate. It has erratic track records for the past as five of its mandate getting suspension from trading.
Conclusion: Cash surplus investors may park funds for long term.
Review By on November 26, 2016
Dilip Davda is a veteran financial journalist associated with the Indian stock market since 1978. He has been contributing to print and electronic media on capital markets, insurance, and finance since 1985.
He is widely recognized for reviewing public issues and non-convertible debentures (NCDs) in the primary market. Drawing on over three decades of market experience and close interaction with merchant bankers, his reviews focus on detailed fundamental and financial analysis of companies, with a special emphasis on SME public issues.
Dilip Davda
SEBI Registered Research Analyst – Mumbai
Registration No.: INH000003127 (Perpetual)
Email: dilip_davda@rediffmail.com
Disclaimer: The information provided herein is solely for educational and informational purposes and does not constitute an offer, solicitation, or recommendation to buy or sell any securities. Readers are advised to consult a qualified financial advisor before making any investment decisions. Investments in the securities market are subject to market risks. The author does not intend to invest in the securities discussed.
The initial public offer (IPO) of Aditya Vision Ltd. offers an early investment opportunity in Aditya Vision Ltd.. A stock market investor can buy Aditya Vision IPO shares by applying in IPO before Aditya Vision Ltd. shares get listed at the stock exchanges. An investor could invest in Aditya Vision IPO for short term listing gain or a long term.
Read the Aditya Vision IPO recommendations by the leading analyst and leading stock brokers.
Aditya Vision IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Aditya Vision IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Aditya Vision IPO?"
Our recommendation for Aditya Vision IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Aditya Vision IPO.
The Aditya Vision IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Aditya Vision IPO allotment status to check.
