Penny Stock Under Rs 50 Declares Final Dividend While Expanding Operations In Maharashtra

As noted on Friday, July 4, 2025, the share price of Bhatia Communications and Retail (India) Limited increased by 0.60 per cent to Rs 23.42, down from the previous closing price of Rs 23.28. This stock is up 19.5 per cent from its 52-week low of Rs 19.51, although it is still below its 52-week high of Rs 36. Over the last few months, the equity has exhibited steady performance.

For the fiscal year 2024-25, the Company's Board of Directors has suggested a final dividend of Re 0.01 per share (1%). This proposal will, however, need the approval of the shareholders during the company's 17th Annual General Meeting scheduled for July 30, 2025. For the purpose of determining eligible shareholders, Bhatia Communications has set a cutoff of July 23, 2025, as the record date.

The company's operations and retail footprint continue to strengthen while seeking to capture the semi-urbanized regions in Maharashtra. Bhatia Communications intends to expedite the pace of store network expansion throughout the state in the next two to three years to enhance market penetration in the already existing districts.

Bhatia Communications began in 2008 with one store and has since expanded into a significant retail and wholesale mobile devices, home appliances, and electronics distributor. The business has expanded to 237 stores as of FY25, comprising 233 company-owned stores and 4 franchise stores. Bhatia Communications is the market leader in Southern and Central Gujarat and has recently expanded into Maharashtra, which now has 16 stores since the first opening in FY23.

Their market offering includes phones, tablets, air conditioners, televisions, laptops, along with other industry-leading related accessories. Mobile phones and tablets are offered by some of the world's largest brands, such as Apple, Samsung, OnePlus, and Xiaomi, which helps in the growth of the company.

Bhatia Communications is still performing well financially. In FY25 Q4, Bhatia reported net sales of Rs 104.49 crore, which is an 11% increase from Rs 94.32 crore in Q4FY24. For this quarter, the net profit stood at Rs 2.93 crore, which is less than the Rs 2.99 crore net profit earned in the same quarter last year.

In FY25, the company recorded a 7 per cent rise in net sales to Rs 444.67 crore and a 20 per cent increase to Rs 13.82 crore in net profit compared to FY24. The company is operating with a net debt-free balance sheet and surplus cash, exemplifying strong financial discipline. Customer-centric, the retail model has a 98 per cent customer conversion rate and an average of 760 sq. ft. store size. Capital expenditure is between Rs 8-10 lakh while working capital stands at Rs 33-35 lakh with a payback period of 12-13 months.

Bhatia Communications' market capitalization stands at Rs 293 crore, along with a PE ratio of 34x, return on equity at 19% and return on capital employed at 21%. The stock has multiplied in value by 280% over the last five years, demonstrating consistent value creation for investors.

The company remains firmly promoter-driven, with Nikhil Bhatia and Sanjeev Bhatia, each owning 36.34 per cent, together holding 73.88 per cent promoter ownership.