Multibagger Penny Stock Below Rs 50: Company Signs Agreement with Shenzhen H&T Intelligent Control Co. Ltd and Shenzhen Jia Zha Geye Technology Co. Ltd
The stock gave multibagger returns of 123 per cent from its 52-week low of Rs 22.07 per share.
Cellecor Gadgets Limited, one of India’s fastest-growing consumer electronics brands, has entered into a significant strategic partnership by signing a Non-Disclosure Agreement (NDA) with Shenzhen H&T Intelligent Control Co., Ltd and Shenzhen Jia Zha Geye Technology Co., Ltd. This collaboration is geared towards establishing a world-class manufacturing facility within India. The proposed facility will specialize in the production of advanced components, including intelligent controllers, sensors, chips, semiconductor elements, and integrated smart solutions, catering to a wide array of industries from consumer electronics and electric vehicles to smart homes, industrial automation, and next-generation chip-based appliances.
This collaboration marks a substantial leap forward in Cellecor’s ambition to drive India's evolution into a global manufacturing hub for smart electronics, simultaneously strengthening the nation’s position in the highly competitive global supply chain. Key aspects of this partnership include a joint investment in developing a state-of-the-art facility in India dedicated to producing intelligent control systems, semiconductor chips, smart components, and sensor modules. Furthermore, Cellecor will gain access to over 2,000 core patents and the advanced R&D expertise of two globally recognised technology leaders in intelligent systems and semiconductor innovation. The facility's output will serve high-growth sectors, including smart home appliances, energy storage, industrial IoT, wearable technology, and semiconductor solutions for advanced electronic applications, employing smart manufacturing and digitalisation techniques aligned with H&T's proven "smart factory" models.
Strategically, the facility is envisioned not only to meet India's rising domestic demand but also to function as a global export hub for regions spanning Asia, Africa, Europe, and the Americas, encompassing semiconductors and embedded smart modules. This alliance combines Cellecor’s agility and market insight with the unparalleled technological strength of Shenzhen H&T Intelligent Control, which annually produces over 300 million units and reinvests over 12 per cent of its annual revenue into R&D, supported by over 1,100 engineers with an average experience of over 15 years. Complementing this is Shenzhen Jia Zha Geye Technology's expertise in advanced sensor solutions and AI-powered device technologies. Together, this synergy in intelligent control, precision sensor manufacturing, and digitalized smart production empowers Cellecor to rapidly scale, innovate, and capitalize on the multi-billion-dollar opportunities within India and across the globe, where the smart electronics and IoT devices market is projected to surpass USD 1.5 trillion by 2030, and India’s electronics production market is poised to exceed USD 300 billion by 2026.
DSIJ’s 'multibagger Pick’ service recommends well researched multibagger stocks with High Returns potential. If this interests you, do download the service details here.
About the Company
Cellecor Gadgets Ltd, founded in 2010, is an Indian company that sells consumer electronics under its brand name. They focus on providing affordable options for various devices, including smart TVs, mobile phones, smart watches, earphones and various accessories. Cellecor outsources the manufacturing of these products and then distributes them through a network of over 900 distributors, 25,000 retailers and 1200 service centres across 28 Indian states, with a strong presence in Uttar Pradesh, West Bengal and Gujarat.
Results: According to half-yearly results, the net sales increased by 103 per cent to Rs 425.71 crore, Profit before tax (PBT) increased by 106 per cent to Rs 19.67 crore and net profit increased by 108.3 per cent to Rs 14.62 crore in H1FY25 compared to H1FY24. In its annual results (FY24), the company reported net sales of Rs 500.45 crore, PBT of Rs 20.71 crore and net profit of Rs 16.09 crore.
The company's shares have an ROE of 32 per cent and an ROCE of 30 per cent. As of October 2024, the promoters own 49.64 per cent of the company, FIIs own 2.92 per cent, DIIs own 1.54 per cent and the public owns 45.90 per cent. The stock gave multibagger returns of 123 per cent from its 52-week low of Rs 22.07 per share.
Disclaimer: The article is for informational purposes only and not investment advice.