Bhatia Communications & Retail Ltd Announces Interim Dividend: A Penny Stock to Watch
The stock market saw a range-bound movement on Thursday after a significant decline, with the Nifty defending the 23,500-level and preventing further downward movement by sellers. Amid this market activity, Bhatia Communications & Retail Ltd, a penny stock priced under ₹30, has attracted attention due to recent corporate actions and growth news.
Stock Performance of Bhatia Communications & Retail Ltd
Bhatia Communications & Retail Ltd’s shares closed 1.14% lower at ₹28.64, after reaching an intraday high of ₹29.80. Over the past 52 weeks, the stock has fluctuated between a high of ₹38.90 and a low of ₹18.87, showcasing significant volatility. However, despite its ups and downs, the stock is currently hovering 50% above its 52-week low, indicating strong upward momentum.
Dividend Announcement for FY 2024-25
The company has declared an interim dividend of ₹0.01 per equity share for the financial year 2024-25, which equals 1% of its face value of ₹1 per share. Shareholders will be eligible for the dividend if they hold shares by the record date, which is set for Wednesday, 27th November 2024. This dividend payout signals the company’s commitment to rewarding investors, even though the amount per share is relatively modest.
Company Profile and Market Position
Bhatia Communications & Retail Ltd is a prominent player in the retail and wholesale distribution of mobile devices, accessories, home appliances, and other electronics. It holds 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. This broad portfolio of brand associations enhances the company’s market position in India’s competitive consumer electronics space.
Q2 FY25 Financial Performance
Bhatia Communications & Retail Ltd reported a strong performance in its Q2 FY25 results. Net sales rose by 16% to ₹107.32 crore, compared to ₹94.36 crore in the same quarter of FY24. The company also recorded a 48% increase in net profit, reaching ₹3.66 crore for Q2 FY25, up from ₹2.47 crore in Q2 FY24. The half-yearly results showed a solid 11% growth in net sales for H1 FY25, totaling ₹212.14 crore, while net profit grew by 21% to ₹7.31 crore compared to H1 FY24.
Key Financial Ratios and Market Cap
The company’s market capitalization stands at ₹350 crore, with a price-to-earnings (P/E) ratio of 34x, return on equity (ROE) of 19%, and return on capital employed (ROCE) of 21%. This indicates a healthy financial position with solid profitability metrics. The promoters of the company have shown confidence in the business by purchasing 30,000 shares in recent months. Their stake increased slightly from 73.85% in June 2024 to 73.88% in September 2024.
Long-Term Performance
Over the last five years, Bhatia Communications & Retail Ltd has delivered an impressive multi-bagger return of 300%, making it an attractive option for long-term investors. Despite recent fluctuations, the stock has performed well above its 52-week low and continues to be a noteworthy penny stock for investors with a high-risk tolerance.
