Small-cap stock below ₹50 edges higher after THIS FY25 business update

Small-cap stock below ₹50: Bhatia Communications & Retail (India) stock gained almost 2% on Wednesday, June 4, following a business update for the financial year 2024-25 (FY25).

Gujarat-based Bhatia Communications & Retail (India), which is a multi-brand consumer durables and electronic and electrical appliances retailer, witnessed a decent profit and revenue growth in the recently concluded financial year, on the back of sustained expansions and profitable operations with best-in-class ROEs.

Its FY25 profit after tax (PAT) recorded a 20% year-on-year (YoY) growth to ₹13.82 crore, as against ₹11.52 crore in FY24. Meanwhile, its revenue grew 7% YoY to ₹445 crore.

Operating performance remained strong, with earnings before interest, tax, depreciation and amortisation (EBITDA) rising 18% YoY to ₹22 crore, and EBITDA margin improving to 4.9% in FY25 from 4.4% in FY24.

"Current year operating margins reflect the robust set of operations and given the rise of discretionary income for the consumers, the revenue is expected to grow consistently with robust profitability," the small-cap company said.

During the year, the company deepened its footprint in Maharashtra, with 16 stores. Meanwhile, the total store count in FY25 rose to 237 from 203 earlier.

The quarterly performance was also promising as topline grew 11% YoY to ₹104.49 crore. However, PAT moderated slightly (down 2%) due to higher expenses. The company has a debt-to-equity of 0.10 times and is net debt-free, with surplus cash on its books.

Expansion Plans

The company is targeting the semi urban areas in Maharashtra, the same strategy it deployed in Gujarat.

Over the next 2-3 years, the target of the company is to develop a strong foothold in the existing districts of Maharashtra, it said.

Bhatia Communications & Retail Share Price Trend

The stock of Bhatia Communications & Retail (India) gained 1.88% in trade to hit the day's high of ₹23.25 apiece. The small-cap stock below ₹50, however, settled the day just 0.31% higher at ₹22.89 apiece.

In the last one year, the stock has gained 11%, driving the company's market capitalisation to ₹286 crore. However, in the short run, the small-cap stock has struggled, shedding 6% in a month and 21% year-to-date.

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