Aditya Vision Limited - Rating upgraded to 'CRISIL A- / Stable', Rated amount enhanced for Bank Debt

CRISIL Ratings has upgraded its rating on the long-term bank facilities of Aditya Vision Limited (AVL) to 'CRISIL A-/Stable' from 'CRISIL BBB+/Stable'.

The upgrade reflects strengthening market position as reflected in healthy revenue of Rs 641 crore in Q1 fiscal 2024 (Rs 439 crore in Q1 fiscal 2023) and Rs 1322 crore for fiscal 2023 (Rs 899 crore in fiscal 2022). The 47% revenue growth on-year in fiscal 2023 is driven by wider outlet coverage with AVL opening 41 stores in 2 fiscals through March 31, 2023 and another 12 stores in Q1 fiscal 2024. AVL entered Jharkhand in fiscal 2022 and eastern UP in fiscal 2023.

As on June 30, 2023, AVL has 117 stores of which 91 stores are in Bihar addressing more than 50% market in the state, 18 stores in Jharkhand and 8 stores in eastern UP. Going forward also company is expected to benefit from underpenetrated markets sustaining its market position.

Operating margin improved to 10% in fiscal 2023 (9% in fiscal 2022) and sustained at 10% in Q1 fiscal 2024 on account of efficiencies from increase in volumes. Hence, improved scale of operations has strengthened company's cash flow adequacy and provide necessary financial flexibility.

The rating reflects extensive experience of the promoter in the electronics retail industry, established market position and sound operating efficiency. These strengths are partially offset by moderate financial risk profile and working capital cycle and exposure to intense competition in consumer durable retailing segment.

Shares of Aditya Vision Ltd was last trading in BSE at Rs. 2352.25 as compared to the previous close of Rs. 2375.50. The total number of shares traded during the day was 6721 in over 872 trades.

The stock hit an intraday high of Rs. 2428.00 and intraday low of 2340.00. The net turnover during the day was Rs. 15880567.00.

Source : Equity Bulls

Keywords

AdityaVision INE679V01019 RatingUpdate Upgrade