Heavy buying witnessed in this high ROE & high ROCE multibagger stock – Hit the upper circuit today!

The stock gave multibagger returns of 188 per cent from its 52-week low of Rs 88.15 per share.

Cellecor Gadgets Ltd, founded in 2010, is an Indian company that sells consumer electronics under its brand name. They focus on providing affordable options for a wide range of devices including smart TVs, mobile phones, smartwatches, earphones, and various accessories. Cellecor outsources the manufacturing of these products and then distributes them through a network of over 900 distributors, 25,000 retailers, and 1200 service centres across 28 Indian states, with a strong presence in Uttar Pradesh, West Bengal, and Gujarat.

Cellecor is riding a wave of success, following impressive financial results. To maintain momentum, they've unveiled a strategic growth plan for 2024-2025. This multi-pronged approach focuses on both internal optimization and external expansion.

Internally, Cellecor is partnering with manufacturers to ensure efficient, high-quality production and on-time deliveries. Additionally, they'll implement smarter inventory management systems and expand their workforce to meet growing demand. Externally, Cellecor is looking to reach more customers through strengthened retailer relationships, wider distribution networks, and targeted online and offline marketing campaigns. To capitalize on the premium electronics market, they're launching the "Evoke" brand, featuring high-end laptops, TVs, and smart home appliances. Finally, Cellecor plans to solidify its brand image through strategic influencer partnerships and targeted advertising. This focus on operational excellence, customer acquisition, and brand building positions Cellecor for continued dominance in the consumer electronics market.

Also Read: Promoters bought 2,46,000 shares & FIIs took a fresh entry: This multibagger micro-cap company announces positive FY24 results & final dividend after 2 years!

Today, shares of Cellecor Gadgets Limited hit a 5 per cent to Rs 254.25 per share from its previous closing of Rs 242.15. The stock gave multibagger returns of 188 per cent from its 52-week low of Rs 88.15 per share. A small and medium enterprise (SME) stock is being traded in a lot of 1,200 shares. At a price of Rs 254.24 per share, the total cost of this lot is Rs 3,05,100.

Cellecor Gadgets Limited reported strong financial performance in FY24 compared to FY23. The company's total revenue nearly doubled, reaching Rs 500.52 crore from Rs 264.35 crore, reflecting a significant increase of 89.33 per cent. This growth was mirrored in profitability. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) rose even more sharply, jumping 135.93 per cent to Rs 29.65 crore from Rs 12.57 crore. Similarly, Profit After Tax (PAT) witnessed a substantial increase of 99.39 per cent, reaching Rs 16.09 crore compared to Rs 8.07 crore in the previous fiscal year. These figures paint a picture of a company experiencing remarkable financial growth.

Looking specifically at the second half of FY24 (H2FY24), the positive trend continued. Total revenue for H2FY24 was Rs 290.80 crore, a significant increase of 92.81 per cent compared to Rs 150.83 crore in the corresponding period of the previous year. EBITDA and PAT followed suit, with increases of 113.69 per cent and 92.96 per cent respectively. This strong performance in the latter half of the fiscal year suggests that Cellecor Gadgets Limited is maintaining its momentum and is well-positioned for continued success.

The shares of the company have an ROE of 117 per cent and an ROCE of 84 per cent. As of March 2024, the promoters of the company own a 51.54 per cent stake, FIIs own 0.77 per cent, DIIs own 3.91 per cent and the rest 43.78 per cent is owned by the public.

Disclaimer: The article is for informational purposes only and not investment advice.