Multibagger stock engaged in multi-brand retail selling of Smartphones, Consumer durable electronics goods, electric bikes and many more jumped 7 percent in the day’s trade upon receiving distribution rights for Honor Brand in India.
Price Action
With a market capitalization of Rs. 888 Crores, the shares of Jay Jalaram Technologies Limited were trading at Rs. 798.50 per equity share, down 2.17 percent from its previous day’s close price of Rs. 816.20. It has delivered multibagger returns of 300 percent in a year.
What Happened
Jay Jalaram Technologies Limited engaged in multi-brand retail selling of Smartphones, Consumer durables, electronics, and many more, has entered into a non-exclusive distribution agreement with Honortech Universal Private Limited for a period of four years,
This agreement grants Jay Jalaram Technologies Limited the rights to sell and distribute products under the “Honor” brand in seven Indian states namely, Gujarat, Madhya Pradesh, Uttar Pradesh, Chhattisgarh, Rajasthan, Maharashtra, and Uttarakhand, thereby expanding its product portfolio and market reach.
Why it Matters
By securing distribution rights for the “Honor” brand, It is poised to tap into new customer segments and strengthen its presence across seven key Indian states. This move not only diversifies the company’s offerings but also demonstrates its commitment to growth and adaptability in the dynamic technology market.
The non-exclusive nature of the agreement allows for flexibility while leveraging the reputation of the “Honor” brand, potentially leading to increased sales, enhanced market share, and improved financial performance along with expanding its reach, signaling a significant increase in brand diversity and positioning the company for accelerated growth across multiple market segments in seven strategically important Indian states.
About the Company
Jay Jalaram Technologies Limited is engaged in multi-brand retail selling of Smartphones, Consumer durable electronics goods like TV’s, Fridges, Electric Bikes like Revolt, and related services.
It operates its retail business of mobile phones and related accessories, consumer-durable electronic goods, information technology products, and other electronic goods under the brand names KORE, EROK, and SIMRON.
Financials and Ratios
Its revenue from operations grew by 116 percent from Rs. 249 Crores in FY23 to Rs. 539 Crores in FY24, accompanied by profits of Rs. 3 Crores to Rs. 5 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 21 percent, and a return on capital employed (ROCE) of 22.4 percent. It has reported a debt-to-equity ratio of 1.62.
Written by: Bharath K.S
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