Multibagger Stock Jumps After Expanding Presence in South India Through Partnership with B New Mobiles and Celekt Retail Chains, Projecting Rs 500 Million in Annual Business
The stock gave multibagger returns of over 200 per cent from its 52-week low of Rs 17.35 per share.
On Tuesday, shares of Cellecor Gadgets Limited jumped 5 per cent to Rs 55.40 per share from its previous closing of Rs 52.75 per share. The stock’s 52-week high is Rs 81.50 per share and its 52-week low is Rs 17.35 per share.
Cellecor Gadgets Limited has strategically partnered with B New Mobiles and Celekt, two prominent retail chains in South India, to expand its market reach. This collaboration aims to bolster Cellecor's presence in Andhra Pradesh, Telangana, and Maharashtra, granting consumers easier access to its diverse range of smart gadgets, electronics, and appliances. By aligning with these established retailers, Cellecor seeks to leverage their extensive store networks and strong customer trust, effectively increasing its distribution footprint and enhancing brand visibility.
B New Mobiles, with its 141 stores across Andhra Pradesh and Telangana, brings over three decades of industry experience and a reputation for excellent customer service. Similarly, Celekt, boasting 117 stores in the same regions plus Maharashtra, is recognized for its comprehensive product selection and robust distribution network. These partnerships are crucial for Cellecor's objective of becoming a household name in India, as they facilitate the delivery of high-quality, innovative products through trusted offline retail channels.
This alliance is projected to generate an annual business of INR 500 million, signifying a substantial boost to Cellecor's market position. The collaboration not only expands Cellecor's retail footprint but also promises to enhance the shopping experience for South Indian consumers by providing access to advanced technology with superior value. By aligning with B New Mobiles and Celekt, Cellecor is taking a significant step towards solidifying its status as a key player in the competitive Indian consumer electronics market.
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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 various devices, including smart TVs, mobile phones, smart watches, 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.
Results: According to half-yearly results, the net sales increased by 103 per cent to Rs 425.71 crore, Profit before tax (PBT) increased by 106 per cent to Rs 19.67 crore and net profit increased by 108.3 per cent to Rs 14.62 crore in H1FY25 compared to H1FY24. In its annual results (FY24), the company reported net sales of Rs 500.45 crore, PBT of 20.71 crore and net profit of Rs 16.09 crore.
The company's shares have an ROE of 32 per cent and an ROCE of 30 per cent. As of October 2024, the promoters own 49.64 per cent of the company, FIIs own 2.92 per cent, DIIs own 1.54 per cent and the public owns 45.90 per cent. The stock gave multibagger returns of over 200 per cent from its 52-week low of Rs 17.35 per share.
Disclaimer: The article is for informational purposes only and not investment advice.