Penny stock below Rs 35 hit 5 per cent upper circuit today; Recently; Promoters were allocated 50,00,000 warrants & FIIs were allocated 1,00,00,000 warrants

The stock is up by 73 per cent from its 52-week low of Rs 18.30 per share and gave multibagger returns of 325 per cent in 5 years.

Today, shares of Bhatia Communications & Retail Ltd hit a 5 per cent upper circuit to Rs 31.66 per share from its previous closing price of Rs 30.16 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 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.

Recently, the board of directors of Bhatia Communications & Retail (India) Limited approved the allotment of 1,55,00,000 warrants convertible into equity shares at an issue price of Rs 23.75 per warrant on a preferential basis. The warrants were allotted to the promoter group and identified non-promoter person allottees. The company received 25 per cent of the issue price upfront, aggregating to Rs 9,20,31,250. Each warrant is convertible into one equity share of the face value of Re 1 subject to receipt of the balance consideration of Rs 17.81 per warrant within 18 months from allotment.

The subscription for the warrants was successful, with an aggregate consideration of Rs 36,81,25,000, of which Rs 9,20,31,250 was paid upfront. The warrants were issued for Rs. 23.75 each, with 25 per cent payable on subscription and allotment and the balance 75 per cent payable on the exercise of conversion rights within 18 months. Promoters were allocated 50,00,000 warrants, FIIs were allocated 1,00,00,000 warrants and non-promoters were allocated 5,00,000 warrants.

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 Rs 392 crore with a PE of 30x, an ROE of 20 per cent and an ROCE of 22 per cent. The stock is up by 73 per cent from its 52-week low of Rs 18.30 per share and gave multibagger returns of 325 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. 

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