Penny stock below Rs 40 hit 5 to keep under the radar as the company has entered into a loan agreement with Interlink Warehousing LLP
The stock is up by 96.7 per cent from its 52-week low of Rs 18.30 per share and gave multibagger returns of 330 per cent in 5 years.
Today, shares of Bhatia Communications & Retail Ltd gained 4.44 per cent to Rs 36 per share from its previous closing price of Rs 34.47 per share. The stock’s 52-week high is Rs 38.90 and its 52-week low is Rs 18.30.
Bhatia Communications & Retail (India) Limited informed that the company has executed a Loan Agreement with Interlink Warehousing LLP. The agreement details are as follows:
- Parties: Bhatia Communications & Retail (India) Limited and Interlink Warehousing LLP.
- Purpose: Inter Corporate Loan.
- Amount: Rs 5 crore.
- Shareholding: Nil.
- Significant Terms: Interest rate of 15 per cent p.a., tenure of 6 months from the 1st disbursement or until demanded by the lender. The loan is unsecured.
- Related Parties: No.
- Related Party Transactions: No.
- Share Issuance: Not applicable.
- Loan Details: Lender: Bhatia Communications & Retail (India) Limited, Borrower: Interlink Warehousing LLP and Date of execution: September 20, 2024.
About the company
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Bhatia Communications & Retail (India) Limited is a major player in the retail and wholesale distribution of mobile devices, accessories, home appliances, and other electronic products. The company boasts strong partnerships with leading brands such as Apple, Samsung, OnePlus, Vivo, Oppo, Realme, Xiaomi, Motorola, Techno, Nothing, Noise, Boat, HP, Lenovo, Fire Boltt and more. With an average capital expenditure of Rs 8 to 10 lakhs per store, Bhatia Communications operates a network of 172 stores across India, including 160 owned stores and 12 franchise stores.
Bhatia Communications & Retail (India) Limited has declared a final dividend of Re 0.01 per equity share (1 per cent). The record date for determining eligibility for the dividend is Tuesday, September 24, 2024. Shareholders who hold shares on this date will be entitled to receive the dividend. Dividend entitlement will be based on the beneficial ownership as recorded by the NSDL and CDSL on the record date.
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.
The company has a market cap of over Rs 400 crore with a PE of 36x, an ROE of 20 per cent and an ROCE of 22 per cent. The stock is up by 96.7 per cent from its 52-week low of Rs 18.30 per share and gave multibagger returns of 330 per cent in 5 years. Investors should keep an eye on this micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.