Promoters increase stake & FIIs took a fresh entry: Multibagger penny stock below Rs 30 to keep under radar as Board to raise Rs 36.2 crore for business expansion!
The stock is up by 88 per cent from its 52-week low of Rs 13.10 per share and gave multibagger returns of 225 per cent in 3 years.
Bhatia Communications & Retail (India) Limited is planning to raise funds up to Rs 36.2 crore to fuel business growth and strengthen their financial resources. To achieve this, they will issue warrants convertible to equity shares on a preferential basis. These warrants will be offered to a specific group of investors including promoters and public category individuals, detailed in a separate document. The price of the warrants will be determined as per regulations and needs to be fully paid in cash. Investors will need to pay 25 per cent upfront at the time of allotment and the remaining 75 per cent when they choose to convert the warrants into actual shares. This preferential issuance requires approval from shareholders through an Extraordinary General Meeting (EGM) scheduled for August 12th, 2024. More details on the number of warrants issued and the outcome of the subscription will be available after the allotment process.
Today, shares of Bhatia Communications & Retail Ltd were locked in a 2 per cent lower circuit to Rs 24.63 per share from its previous closing of Rs 25.13. The stock’s 52-week high is Rs 38.90 and its 52-week low is Rs 13.10.
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 88 per cent from its 52-week low of Rs 13.10 per share and gave multibagger returns of 225 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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