Promoters hold 73.88 per cent stake: Penny stock under Rs 25; Board Announces Record Date for Dividend

DSIJ Intelligence-1 / 05 Jul 2025/ Categories: Dividend, Penny Stocks, Trending

Promoters hold 73.88 per cent stake: Penny stock under Rs 25; Board Announces Record Date for Dividend

The stock is up by 19.5 per cent from its 52-week low of Rs 19.51 per share and has given multibagger returns of 280 per cent in 5 years.

On Friday, shares of Bhatia Communications & Retail Ltd gained 0.60 per cent to Rs 23.42 per share from its previous closing price of Rs 23.28 per share. The stock’s 52-week high is Rs 36 per share and its 52-week low is Rs 19.60 per share.

The Board of Directors has recommended a final dividend of Re 0.01 per equity share (1%) for the financial year 2024-25, pending shareholder approval at the upcoming 17th Annual General Meeting scheduled for July 30, 2025. To determine the eligible shareholders for this dividend, the company has fixed Wednesday, July 23, 2025, as the Record Date for equity shares.

About the Company

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 237 stores as of FY25, with 233 owned and 4 franchised. Starting with just 1 store in 2008, Bhatia has expanded its retail footprint to 1.80 lakh sq. ft., primarily dominating South and Central Gujarat. The company also has a significant presence in Maharashtra, where it opened its first store in FY23 and now operates 16 stores. Bhatia maintains strong partnerships with leading brands including Apple, Samsung, OnePlus, and Xiaomi, offering a wide array of products from mobile phones and tablets to air conditioners, televisions, and laptops.

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Financially, Bhatia Communications & Retail demonstrates robust operations, with strong current-year operating margins and an expected consistent growth in revenue and profitability. The company operates with a net debt-free balance sheet and holds surplus cash. Its customer-centric approach is evident in a remarkable 98 per cent customer conversion rate. On average, each store spans 760 sq. ft., and requires an average capital expenditure of Rs 8-10 lakhs, and an average working capital of Rs 33-35 lakhs. The average payback period for a store is between 12-13 months. With 73.88 per cent of the shareholding controlled by promoters Nikhil Bhatia and Sanjeev Bhatia (each holding 36.34 per cent), Bhatia Communications & Retail is strategically targeting semi-urban areas in Maharashtra for further expansion over the next 2-3 years, aiming to establish a strong foothold in existing districts.

According to the Quarterly Results, the net sales increased by 11 per cent to Rs 104.49 crore in Q4FY25 compared to net sales of Rs 94.32 crore in Q4FY24. The company reported net profit of Rs 2.93 crore in Q4FY25 compared net profit of Rs 2.99 crore in Q4FY24. 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 a market cap of Rs 293 crore with a PE of 34x, an ROE of 19 per cent and an ROCE of 21 per cent. The stock is up by 19.5 per cent from its 52-week low of Rs 19.51 per share and has given multibagger returns of 280 per cent in 5 years.

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