Star stock of the month: Cellecor Gadgets shines with over 130% rally in October

Cellecor Gadgets Ltd, a Delhi-based company engaged in the sourcing, branding, and distribution of a range of products, including televisions, mobile phones, smart wearables, mobile accessories, smartwatches, and neckbands, experienced a significant increase in its share price in October.

At the beginning of the month, on October 3rd, the stock commenced trading at Rs 106.45 per share, marking a 4.99% increase from the previous month’s closing price of Rs 101.4 per share on the NSE. It reached monthly highs and lows of Rs 269 and Rs 106.45, respectively, and concluded the month at Rs 241.90 per share. If we calculate the return for the month, it would be 138%, meaning that investors more than doubled their money within a month.

This exceptional performance earned the stock the title of “Star Stock of the Month,” as it secured the number one position, outperforming all other stocks listed in the Indian stock market in terms of generating returns in a single month.

Today, the stock opened the day at Rs 242 per share, and as of writing this article, it is trading at Rs 239 per share. The current market capitalization of the company stands at Rs 495 crore, and the stock has delivered an impressive multibagger return of over 130% in a month.

Stocks’s trading and delivery data 

Business Overview: 

Cellecor Gadgets Ltd, an India-based company, is involved in the sourcing, branding, and distribution of a range of products, including televisions, mobile phones, smart wearables, mobile accessories, smartwatches, and neckbands. The company markets its products under its flagship brand, CELLECOR. Cellecor operates in three primary business segments: entertainment and communication, peripherals, and modern accessories.

Within the entertainment and communication segment, Cellecor offers 35 different television models, 15 sound systems and soundbars, and 70 mobile phone models. It also provides high-quality sound systems and soundbars to create a cinematic experience within your living space. The peripherals segment is dedicated to products like true wireless (TWS) earbuds, neckbands, and smartwatches. These items cater to the needs of consumers seeking convenient and technologically advanced accessories.

In the modern accessories category, it offers an array of products such as power banks, data cables, Universal Serial Bus (USB) chargers, quick chargers, wireless and standard power banks, a variety of durable data cables, and essential adapters and chargers.

Financial Performance   

In the September quarter of FY24, the company experienced a significant increase in its revenue from operations, rising from Rs 114 crore to Rs 210 crore, marking an 84% increase. The company reported an operating profit of Rs 13 crore, compared to Rs 5 crore in the corresponding quarter of the previous year. The operating profit margin stood at 6% during the quarter.

Meanwhile, the company’s net profit for the quarter amounted to Rs 7 crore, a significant increase compared to the profit of Rs 3 crore in the corresponding quarter of the previous year.

The company’s ROCE (Return on Capital Employed) and ROE (Return on Equity) are 66.5% and 99.5%, respectively. The company’s shares are trading at a P/E (Price-to-Earnings) ratio of 62 times in the market.

Stock Price Chart (Daily time frame) 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.