Promoters increase stake & FIIs took a fresh entry: Multibagger penny stock below Rs 30 hit back-to-back upper circuit as Board likely to raise funds for business expansion!
The stock is up by 93 per cent from its 52-week low of Rs 13.10 per share and gave multibagger returns of 265 per cent in 3 years.
Today, shares of Bhatia Communications & Retail Ltd were locked in a 5 per cent upper circuit to Rs 25.13 per share from its previous closing of Rs 23.94. 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 2 times on BSE.
Bhatia Communications & Retail (India) Limited inform you that the meeting of the Board of Directors of the Company is scheduled to be held on Saturday, July 20, 2024, at 11.00 A.M. at the registered office of the company, inter-alia, to transact the following businesses:
1. Evaluate the proposal to raise funds, to accelerate business growth and to augment the long-term financial resources of the company, by way of the issue of warrants/equity shares/convertible securities through permissible mode, as may be permitted under applicable laws and subject to all necessary approvals, and to appoint requisite intermediaries required for this purpose.
2. To seek members’ approval wherever applicable using passing the requisite resolution(s) for the above-said board decisions and other matters connected therewith and/or incidental thereto.
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 300 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 93 per cent from its 52-week low of Rs 13.10 per share and gave multibagger returns of 265 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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