Buy Aditya Vision; target of Rs 600: ICICI Direct

About this update from Aditya Vision Ltd.

ICICI Direct's research report on Aditya VisionOur analysis of Aditya Vision’s store opening potential across UP, Bihar, Jharkhand, MP and Chhattisgarh, reveals a significant opportunity for it to lead organised retail penetration. We note: (1) AVL achieved its 200+ store mark in FY26 after opening 32 stores in FY26. (2) Currently, AVL operates 207 stores, whereas Croma and Reliance Digital together operate ~197 stores (in our understanding), out of total potential store of 1,328, implying organised penetration of ~30% in key geographies of AVL. (3) AVL has built a strong presence in Bihar, eastern UP and Jharkhand, where national chains have limited reach. Its regional understanding and cost structure provide a structural advantage over national peers, in our view. (4) Currently, AVL has no stores in Madhya Pradesh, but it aims to expand into MP, UP (western and central) and Chhattisgarh with larger format stores. The company is targeting cities with higher disposable income. We remain constructive on AVL’s expansion trajectory. Retain BUY.OutlookWe model AVL to report revenue/PAT CAGRs of 19.3%/23.0% over FY25–28E. Maintain BUY with a DCF-based unchanged TP of INR 600 (implied P/E works out to 39x FY28E EPS).Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.Aditya Vision - 2904026 - icici

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