Ashish Kacholia-backed Aditya Vision Under GST Lens: Analyzing the Recent Developments

Aditya Vision Limited stands as a dynamic and service-oriented electronic Retail Chain, experiencing rapid growth in Bihar. As a conglomerate of multi-brand stores catering to various consumer durables, our footprint spans nearly every district of Bihar, establishing Aditya Vision as a household name throughout the state.

In the past three years, Aditya Vision’s stock has surged, delivering a remarkable 15x return, with an astounding 100% increase in the last year alone. However, the recent downturn on Tuesday, marked by a 3% decrease, prompts the question: what precipitated the decline in this once-multibagger stock?

Reason For Downfall

The reason for this downturn lies in the recent GST search conducted by the Uttar Pradesh State GST at all of our showrooms and warehouses in the state. While we have diligently cooperated with the authorities, furnishing them with all requisite information and support, they have opted to issue INS 2 (orders of seizure) for seven temporary warehouses and INS 3 (orders of prohibition) for three stores, late into the night of April 8th, 2024.

In response, the company has issued a press release affirming our commitment to ethical business practices and stringent corporate governance. We believe that these actions by the GST department may lead to a limited financial impact, primarily affecting the sale of three stores and the blocking of stocks in seven temporary warehouses. Nevertheless, we are actively taking steps to swiftly normalize operations.

Q3FY24 Result

Standalone figures for Q3FY24 showcase promising performance: Net Sales soared to Rs. 413.26 crore in December 2023, marking a substantial 30.02% increase from Rs. 317.85 crore in December 2022. Quarterly Net Profit also witnessed a commendable rise to Rs. 22.17 crore in December 2023, reflecting a 13.58% growth from Rs. 19.52 crore in December 2022. Furthermore, EBITDA surged to Rs. 44.38 crore in December 2023, up by an impressive 21.12% from Rs. 36.64 crore in December 2022.

Ashish Kacholia

In terms of stakeholding, esteemed investor Ashish Kacholia’s latest shareholding pattern as of March 2024 reveals a 1.87% stake in Aditya Vision Limited, translating to 2,39,506 shares of the company.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.