Small Cap Stock Below Rs 30 Locked In 5% Upper Circuit After Fixing Record Date For Dividend

Today, shares of Bhatia Communications & Retail (India) Ltd surged to hit the 5% upper circuit, locking in at Rs 28.11 apiece on the BSE. The company's market capitalization reached Rs 351.80 crore, showcasing its growing prominence in the retail and wholesale distribution sector. Over the past 52 weeks, the stock has witnessed a high of Rs 38.90 and a low of Rs 17.35.

Bhatia Communications' stock has shown significant growth, delivering robust returns across various timeframes. In the past week, the stock has rallied by 26.85%, while over the last month, it has gained 28.65%. Year-to-date (YTD), the stock has surged by 34.37%. Over a five-year period, the company's shares have delivered an impressive return of 262%.

Last month, the company announced its first interim dividend for FY 2023-24. According to an exchange filing, the Board of Directors recommended a 1% dividend, amounting to Re. 0.01 per equity share. The dividend, if approved by the members, will be disbursed within the time frame outlined in the Companies Act, 2013. Shareholders who acquired shares before the cut-off date of August 30, 2024, are eligible to vote electronically during the company's Annual General Meeting (AGM). The company has fixed Tuesday, 24th September, 2024 as the record date for the purpose of above said dividend payment.

In the first quarter (Q1) of FY 2024-25, the company's revenue grew by 1.89% compared to the same period last year, reaching Rs 105.16 crore. On a quarterly basis, revenue increased by 11.48% over the previous three months, reflecting the company's consistent upward trajectory.

The company's net profit also experienced growth, rising by 2.24% year-on-year to Rs 3.65 crore in Q1 FY 2024-25. On a quarterly basis, net profits jumped by 22.48% over the past three months. These strong financial results underscore the company's resilience and its ability to capitalize on opportunities in the rapidly expanding retail and electronics market.

In July 2024, Bhatia Communications' Board of Directors approved the issuance of up to 1.55 crore convertible warrants to promoters and public investors at a price of Rs 23.36 per warrant, aiming to raise Rs 36.20 crore. However, in a subsequent meeting on August 2, 2024, the Board revised the issue price to Rs 23.75 per warrant, increasing the total funds to be raised to Rs 36.81 crore. To address stock exchange requirements, the company issued a corrigendum to the notice of its Extra-Ordinary General Meeting, providing updated details about the preferential issue, including the revised issue price and post-issue shareholding structure.

Bhatia Communications & Retail (India) Ltd is a leading player in the retail and wholesale distribution of mobile handsets, tablets, data cards, mobile accessories, home appliances, and other electronic products. The company has established strong partnerships with top-tier brands such as Apple, OnePlus, Samsung, Vivo, Oppo, Realme, Mi, Motorola, and HP, among others. With an average capital expenditure of Rs 8 to Rs 10 lakhs per store, the company operates 172 stores across India, of which 160 are owned and 12 are franchised.