Multibagger stock in green as the company expands its overseas operations by incorporating a new wholly-owned subsidiary in Hong Kong

The shares of the company have an ROE of 117 per cent and an ROCE of 84 per cent.

Cellecor Gadgets Limited, a rapidly growing leader in India’s dynamic Electronics and Consumer Durables Goods Market, announces the establishment of its wholly-owned subsidiary in Hong Kong, named Cellecor Gadgets HK Limited. This strategic initiative, in line with the company’s announced blueprint for growth, underscores the company’s commitment to enhancing its supply chain capabilities and seizing whatever opportunities are available.

Located strategically in Hong Kong, known as a gateway to Asia’s electronics industry, the new subsidiary will serve as a pivotal hub for Cellecor Gadgets' procurement of critical components and operational activities, and with Hong Kong’s robust logistical infrastructure and business-friendly environment, the Company aim to further optimize its supply chain efficiencies and strengthen its competitive edge in delivering innovative, high-quality cost-completive products to its customers.

Hong Kong’s strategic location and established supplier network will enable Cellecor Gadgets to streamline operations, reduce lead times, and respond swiftly to market trends. The subsidiary will foster closer collaboration with regional distributors, enhancing growth opportunities and facilitating seamless market penetration across key consumption centres. As Cellecor Gadgets continues to innovate and expand its product offerings, the establishment of the Hong Kong subsidiary reaffirms our dedication to driving technological advancement and sustainability in the electronic consumer durables industry.

Also Read: Promoters bought 1,86,66,000 shares: Multibagger aerospace & defence stock hit upper circuit on July 19, 2024

About the company

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.

Today, shares of Cellecor Gadgets Limited gained 8.82 per cent to Rs 282 per share from its previous closing of Rs 259.15. The stock gave multibagger returns of 220 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 282 per share, the total cost of this lot is Rs 3,38,400.

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.