Penny Stock Below Rs 30: Company Reports Amazing Q3FY25 & 9MFY25 Results and Declares 3rd Interim Dividend
The stock is up by 22.3 per cent from its 52-week low of Rs 19.51 per share and gave multibagger returns of over 200 per cent in 5 years.
On Friday, shares of Bhatia Communications & Retail Ltd plunged 4.75 per cent to Rs 23.86 per share from its previous closing price of Rs 25.05 per share with an intraday high of Rs 25.06 per share and an intraday low of Rs 23.70 per share. The stock’s 52-week high is Rs 38.90 and its 52-week low is Rs 19.51.
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 been steadily growing its footprint across South Gujarat and Maharashtra. In 2024, the company achieved a significant milestone of 200 stores and is further expanding its reach in Maharashtra with a target of 25 new stores by the end of FY25. Currently, the company operates 210 stores, each with an average size of 760 sq. ft. and boasting a remarkable customer conversion rate of 98 per cent. With a consumer-centric approach, the company invests an average of Rs. 8-10 lakhs per store for capex and Rs 33-35 lakh for working capital. The average monitoring period for each store is 3-4 months, and the average payback period is 12-13 months.
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Results: According to the Quarterly Results, the net sales increased by 9 per cent to Rs 126.81 crore in Q3FY25 compared to net sales of Rs 116.78 crore in Q3FY24. The net profit increased by 44 per cent to Rs 3.58 crore in Q3FY25 compared net profit of Rs 2.49 crore in Q3FY24. In its nine-month results, the net sales increased by 6 per cent to Rs 338.95 crore and the net profit increased by 28 per cent to Rs 10.89 crore in 9MFY25 compared to 9MFY24. The Board has declared a 3rd interim dividend of Re 0.01 (1 per cent) per equity share having a face value of Re 1 to the shareholders for the financial year 2024-25. The dividend shall be paid to shareholders within the time prescribed under the Companies Act, 2013.
The company has a market cap of Rs 299 crore with a PE of 34x, an ROE of 19 per cent and an ROCE of 21 per cent. The stock is up by 22.3 per cent from its 52-week low of Rs 19.51 per share and gave multibagger returns of over 200 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.