Aditya Vision (AVL)

FairStock Score: 38/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Healthy return ratios: ROE of 20.50% and ROCE of 19.13%
• Strong topline growth: sales up 27.62%, with latest quarterly sales at ₹649 Cr
• Piotroski F-Score of 7/9 indicates decent financial health
• Moderate leverage with Debt/Equity of 0.65
• Promoter holding of 47.14% aligns management with shareholders

Concerns

• Very expensive valuation: P/E of 55.59, P/B of 11.86, and PEG of 2.47
• Profit growth of 17.46% trails sales growth of 27.62%, showing margin pressure
• Negligible dividend yield of 0.23% offers little downside support
• FairStock Score of 34/100 is 'RISKY', and the stock is well below its 52-week high

AI Analysis

Aditya Vision has the numbers of a fast grower: sales up 27.62%, ROE at 20.50% and ROCE at 19.13%. The latest quarter shows ₹649 Cr of sales and ₹27 Cr of profit, and a Piotroski F-score of 7/9 suggests the fundamentals are not deteriorating. In Graham's language, this is a good business on the surface. But the price is not good. At ₹503.90, the market cap is ₹6,243 Cr, which means paying 55.59 times earnings and 11.86 times book value. Book value is only ₹42.48. That leaves no margin of safety. I would rather be late to a great business at a fair price than buy a decent business at a silly price. The growth rate seems real, yet profit growth of 17.46% is well behind sales growth of 27.62%. That tells me competition or costs are eating into the returns. With a PEG of 2.47, the market has already priced in years of flawless execution. A dividend yield of 0.23% offers no comfort while I wait. Debt-to-equity of 0.65 is acceptable, but not conservative enough to justify a 55 P/E in a retail business, which tends to be cyclical and vulnerable to consumer sentiment. Promoters hold 47.14%; that's good, but I don't buy shares only because management owns a lot. The 52-week range of ₹420 to ₹705 shows the stock is volatile. At this price, I am not a buyer. If the business can improve margins, and the price drops meaningfully lower, I will start to pay attention. Until then, this belongs in the 'too difficult' pile.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer