Heavy buying in this penny stock under Rs 25; Locked in a 5 per cent upper circuit with 2.20 times on BSE
The stock is up by 40 per cent from its 52-week low of Rs 17.35 per share and gave multibagger returns of 120 per cent in 3 years.
Today, the overall stock market experienced a decline, with major indices falling by more than 1 per cent. However, shares of Bhatia Communications & Retail Ltd defied the downward trend, closing at Rs 24.30 per share, which represents a 5 per cent increase from its previous closing price of Rs 23.15 per share. The stock’s 52-week high is Rs 38.90 and its 52-week low is Rs 17.35. The shares of the company saw a spurt in volume by more than 2.20 times on BSE. 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 11.62 per cent to Rs 104.82 crore in Q1FY25 compared to net sales of Rs 93.91 crore in Q4FY24. The net profit increased by 22.5 per cent to Rs 3.65 crore in Q1FY25 compared to Rs 2.98 crore in Q4FY24. 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.
dividend: The company's Board of Directors has declared an interim dividend of Re. 0.01 per equity share (1 per cent) for the financial year 2024-25 at their meeting on August 13, 2024. This dividend will be paid to shareholders within the timeframe mandated by the Companies Act, 2013. Additionally, the Board approved the Directors' Report for the financial year ended March 31, 2024.
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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 Board of Directors decided on July 20, 2024, to issue up to 1.55 crore convertible warrants to promoters and public investors at Rs. 23.36 per warrant, raising up to Rs 36.20 crore. However, in a subsequent meeting on August 2, 2024, the Board revised the issue price to Rs 23.75 per warrant, increasing the total funds to be raised to Rs 36.81 crore. To reflect these changes and address stock exchange requirements, the Board approved a corrigendum to the Notice of Extra-Ordinary General Meeting, which will include updated information about the preferential issue, including the revised issue price, post-issue shareholding, and other relevant details.
The company has a market cap of over Rs 300 crore with a PE of 26x, an ROE of 20 per cent and an ROCE of 21 per cent. The stock is up by 40 per cent from its 52-week low of Rs 17.35 per share and gave multibagger returns of 120 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.
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