Buy Aditya Vision; target of Rs 640: ICICI Securities

ICICI Securities's research report on Aditya Vision

Aditya Vision (AVL) reported strong performance in Q2FY26 led by disciplined execution and cost-control measures, offsetting the seasonal headwinds. Takeaways: (1) It added nine stores in Q2FY26; on track to cross 200+ stores by FY26 end. (2) SSSG grew 12% YoY in Q2FY26. (3) Inventory remained at INR 6,760mn due to festive stocking and accelerated store rollout. (4) Non-summer products delivered visible traction, supported by festive demand and GST rate reductions. (5) However, cooling products were broadly flat YoY due to unseasonal weather and prolonged monsoon. Given the low penetration of white goods in key areas of operations, along with favourable macro tailwinds and rising premiumisation, we believe these measures may provide strong growth tailwinds to AVL.

Outlook

We model AVL to report revenue/PAT CAGR of 19.0%/23.2% over FY25-28E. Maintain BUY with DCF-based revised TP of INR 640 (earlier: INR 450; implied P/E works out to 42x FY28E EPS).