Promoters increase stake & FIIs took a fresh entry: Penny stock at Rs 21.72 from consumer services industry hit upper circuit with heavy volume

Promoters increase stake & FIIs took a fresh entry: Penny stock at Rs 21.72 from consumer services industry hit upper circuit with heavy volume

Kiran Shroff

The stock is up by 65.8 per cent from its 52-week low of Rs 13.10 per share and gave multibagger returns of 228 per cent in 3 years.

Today, shares of Bhatia Communications & Retail Ltd were locked in a 5 per cent upper circuit to Rs 21.72 per share from its previous closing of Rs 20.69. The stock’s 52-week high is Rs 38.90 and its 52-week low is Rs 13.10. The shares of the company saw a spurt in volume by more than 3.55 times on BSE and the company has not made any significant announcements of late. Hence, the rally in the share price could be driven purely by the market forces. 

Bhatia Communications & Retail (India) Ltd is engaged in the retail and wholesale distribution business of mobile handsets, tablets, data cards, mobile accessories, mobile-related products, home appliances and other electronic items. 

Results: According to the Quarterly Results, the net sales increased by 14.02 per cent to Rs 93.91 crore in Q4FY24 compared to net sales of Rs 82.36 crore in Q4FY23. The net profit increased by 4.2 per cent to Rs 2.98 crore in Q4FY24 compared to Rs 2.86 crore in Q4FY23. In its annual results, the net sales increased by 31.3 per cent to Rs 413.79 and the net profit increased by 20.8 per cent to Rs 11.52 crore in FY24 compared to FY23.

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The company has strong partnerships with various companies like Apple, One Plus, Samsung, Vivo, Oppo, Realme, Mi, Motorola, Techno, Nothing, Noise, Boat, HP, Lenovo, Fire Boltt, etc. The company has an average of Rs 8 to Rs 10 lakhs of capex per store with 172 stores across India (160 owned and 12 franchise). The promoters of the company bought 2,46,000 shares and increased their stake to 73.85 per cent in March 2024 compared to 73.66 per cent in March 2023. In March 2024, FIIs took a fresh entry and bought a 0.08 per cent stake in the company.

The company has a market cap of Rs 271.83 crore with a PE of 32x, an ROE of 14.1 per cent and an ROCE of 16.9 per cent. The stock is up by 65.8 per cent from its 52-week low of Rs 13.10 per share and gave multibagger returns of 228 per cent in 3 years. Investors should keep an eye on this micro-cap stock.

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

Also Read: Can this multibagger stock hit upper circuit of Rs 83.54 per share? President of India owns 71.72 per cent & LIC owns 1.86 per cent stake in this small-cap company!

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