The term wealth creator is loosely bandied about by people who have made a quick buck off stocks. Last year, the term was bestowed upon Ruchi Soya Industries Ltd (NS:). This year, the moniker could belong to Aditya Vision Ltd (BO:), a Bihar-based retailer that has seen its share price zoom 3,057% in one year.
The company’s share price closed at Rs 20.6 on July 8, 2020. It closed July 5, 2021 at Rs 650.25. Since May 31, when it closed at Rs 391.55, the stock has gained over 66%. An investment of Rs 10,000 in the stock on July 8, 2020 would be worth Rs 3.15 lakh today!
The company’s data for the last three years shows a CAGR (compounded annual growth rate) of 30.6% in revenue and 101.8% in profit. The company has also doubled its dividend payout for FY21 to Rs 5 from Rs 2.5 in FY20.
The company has limited itself to Bihar, where it has dug in and established a stronghold. That could be changing in the near future. In its annual report for 2020-21, Aditya Vision said that it will open a store in every district headquarter in Bihar and might even be open to stepping out of Bihar for the first time.