DIIs bought 2 lakh shares: Shares of Bhatia Communications & Retail Ltd in Focus; Details Inside

Bhatia Communications & Retail (India) Limited is a renowned multi-brand retailer specialising in a wide array of consumer durables, electronics and electrical appliances, headquartered in Surat. The company has established itself as a dominant player in South and Central Gujarat and neighbouring areas, operating a network of 253 stores as of H1 FY26 (250 owned, 3 franchise) under various multi-brand outlets (MBOs) like "Bhatia Communication" and exclusive brand outlets (EBOs). Starting its journey in mobile sales in 1996 and incorporating in 2008 with a single store, the company has rapidly expanded, now boasting a total retail footprint of 1.93 Lakh sq. ft. The product portfolio includes Mobile Phones, Tablets, Air Conditioners, LED TVs, Washing Machines, Laptops and other electronic equipment. This growth trajectory recently included expansion outside of Gujarat, with the first store opening in Maharashtra in FY23, where the company now operates 28 stores. A key element of their growth strategy involves gradually converting existing stores, especially in semi-urban areas, into multi-product outlets, leveraging their strong customer conversion rate of 98 per cent.

The company’s business model is characterised by a strong customer-centric approach focusing on Personal Customer Service, which is vital for electronics purchases in India and robust After Sales Service to bolster repeat purchases. Their operational strength is supported by a robust supply chain, direct purchasing from companies at competitive prices and a large supplier base, enabling them to offer a Wider Product Range and attractive offers. Financial prudence is evident in their metrics, including a Net Debt-Free Balance Sheet with Surplus "Cash on Books" and a low Debt to Equity ratio of 0.30x. The average store size is 760 sq. ft., requiring an average Capex of Rs. 8-10 lakhs and an average working capital of Rs. 33-35 lakhs, with an attractive average Payback Period of 12-13 months. The current strategic focus is on aggressively developing a strong foothold in the semi-urban districts of Maharashtra, mirroring the successful strategy deployed in Gujarat, underpinned by strong partnerships, effective MIS for brand selection.

According to the Quarterly Results, the net sales increased by 20 per cent to Rs 134.34 crore in Q2FY26 compared to net sales of Rs 111.54 crore in Q1FY26. The company reported a net profit of Rs 3.73 crore in Q2FY26 compared net profit of Rs 3.58 crore in Q1FY26, an increase of 4 per cent. Looking at half-yearly results (H1FY26), the company reported net sales of Rs 245.88 crore and net profit of Rs 7.31 crore. In its annual results, the net sales increased by 7 per cent to Rs 444.67 crore and the net profit increased by 20 per cent to Rs 13.82 crore in FY25 compared to FY24.

The company has announced a second interim dividend of Re 0.01 (1 per cent) per fully paid-up equity share with a face value of Re 1 for the financial year 2025-26. In compliance with Regulation 42 of the SEBI LODR Regulations, the company has set the Record Date as November 21, 2025. Only shareholders whose names appear on the company's register on this date will be eligible to receive this interim dividend payment.

In September 2025, DIIs took a fresh entry and bought 2,00,000 shares or 0.16 per cent stake. The company has a market cap of over Rs 300 crore with a PE of 25x, an ROE of 18 per cent and an ROCE of 22 per cent. The stock is up over 20 per cent from its 52-week low of Rs 21.20 per share and has given multibagger returns of 240 per cent in 5 years.

Disclaimer: The article is for informational purposes only and not investment advice.