Speciality Retail Stock Hit 5% Upper Circuit On Proposal To Raise Funds This Week

In the speciality retail space, Bhatia Communications & Retail (India) Ltd opened today on the BSE at a 5% upper circuit limit, trading for Rs 22.80 a share. Following the company's announcement that the Board of Directors will convene on Saturday, July 20, 2024, to discuss a proposal for fundraising through the issuance of warrants, equity shares, and convertible securities, there was a spike in the buying activity of the penny stock.

"We wish to inform you that the meeting of the Board of Directors of the Company is scheduled to be held on Saturday, July 20, 2024 at 11.00 A.M. at the registered office of the Company, inter-alia, to transact the following businesses: 1. evaluate the proposal to raise funds, to accelerate business growth and to augment the longterm financial resources of the Company, by way of issue of Warrants/Equity Shares/Convertible Securities through permissible mode, as may be permitted under applicable laws and subject to all necessary approvals, and to appoint requisite intermediaries required for this purpose; 2. to seek members' approval wherever applicable by means of passing the requisite resolution(s) for the above-said board decisions and other matters connected therewith and/or incidental thereto," said Bhatia Communications & Retail (India) in a regulatory filing.

A reputable multi-brand retailer of consumer durables, electronics, and electrical appliances, Bhatia Communications & Retail (India) Limited specialises in a broad selection of products. The company has a stronghold in South and Central Gujarat as well as other nearby regions where PAN Gujarat is present. Under the names Bhatia Communication, "Bhatia Mobile - The One Stop Shop," "Only Mobile," and "Mobile Station," the firm runs a network of multi-brand outlets (MBOs) and oversees the management of exclusive brand outlets (EBOs) for different companies. The firm began selling mobile phones in 1996. It was formed in 2008 with one store, and as of FY24, it has 203 outlets (193 owned and 10 franchises) after extending its business outside Gujarat and launching its first location in Maharashtra in FY23.

In Q4FY24, Bhatia Communications & Retail (India) reported a net profit of Rs 2.98 crore, up 4.20% from Rs 2.86 crore in Q4FY23. Sales in Q4FY24 climbed 14.02% to Rs 93.91 crore from Rs 82.36 crore in Q4FY23. Net profit for the entire year stays the same at Rs 8.49 crore for both FY23 and FY24. At Rs 342.42 crore, sales are unchanged from FY23 to FY24.

Bhatia Communications & Retail (India) recently informed stock exchanges by saying that the date of the Board Meeting to be held for the consideration of Unaudited Financial Results of the company for the quarter ended on 30th June, 2024 shall be intimated in due course of time.