Penny stock below Rs 25 hit back-to-back upper circuits; Board allots 1,55,00,000 shares to promoters & non-promoters!
The stock is up by 44.1 per cent from its 52-week low of Rs 16.08 per share and gave multibagger returns of 180 per cent in 3 years.
Today, shares of Bhatia Communications & Retail Ltd were locked in a 2 per cent upper circuit circuit to Rs 23.17 per share from its previous closing of Rs 22.72. The stock’s 52-week high is Rs 38.90 and its 52-week low is Rs 16.08. In the recent trading sessions, the stock has been hitting back-to-back upper circuits.
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.
About the Company
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.
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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.
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 over Rs 280 crore with a PE of 30x, an ROE of 14.1 per cent and an ROCE of 16.9 per cent. The stock is up by 44.1 per cent from its 52-week low of Rs 16.08 per share and gave multibagger returns of 180 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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