Penny stock below Rs 25 to keep under radar as Board announces positive results and interim dividend!

The stock is up by 33.3 per cent from its 52-week low of Rs 16.08 per share and gave multibagger returns of 130 per cent in 3 years.

Today, shares of Bhatia Communications & Retail Ltd were trading at Rs 22.10 per share same as its previous closing of Rs 22.10. The stock’s 52-week high is Rs 38.90 and its 52-week low is Rs 16.58.

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.

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 276.6 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 33.3 per cent from its 52-week low of Rs 16.08 per share and gave multibagger returns of 130 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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