1. At a Glance
Cell Point (India) Ltd runs 80 mobile retail stores in Andhra Pradesh, selling everything from iPhones to budget phones, TVs to ACs. The business model is simple: sell Samsung at MRP, offer Bajaj Finserv EMI, and pray the customer buys an extended warranty. On paper, revenue looks fat — ₹325 Cr in FY25 — but profits? A tragic ₹0.37 Cr. That’s less than what one Vijayawada wedding band makes in tips.
2. Introduction
Retail is tough. Ask Kishore Biyani. Ask Paytm Mall. And now, look at Cell Point. Born in 2001, this company IPO’d in 2023, raised ₹53 Cr, and now sits on the NSE SME platform with a market cap of just ₹35 Cr. Translation: the market thinks your entire chain of 80 stores is worth less than one Apple showroom in Hyderabad.
Their stock is down 41% in a year, profitability keeps shrinking, and yet the promoters hold a tight 73% — almost like they’re saying,“Public, tum sirf dekho, hum control nahi chhodenge.”
And here’s the irony: they sell iPhones, but their net margin is poorer than a chai stall outside an iPhone launch queue.
3. Business Model (WTF Do They Even Do?)
Let’s decode:
- Core Biz: Multi-brand smartphone retail — Apple, Samsung, Oppo, Realme, Vivo, Xiaomi, etc. Basically, if you’ve argued with a shopkeeper over“Sir, cashback alag hai, GST extra hai”— that’s Cell Point.
- Electronics: TVs (LCD, LED, Smart), Air Conditioners, washing machines — standard durable goods hustle.
- Accessories: Earphones, chargers, covers — the high-margin stuff that keeps lights on.
- Payment Tie-ups: Bajaj Finserv, Capital First, TVS Credit. Because nobody in India buys a ₹1 lakh iPhone without a 24-month EMI plan.
Revenue mix? 96% comes from stock-in-trade (reselling), 4% from other operating revenue. Basically, no real moat — just a reseller margin game.
4. Financials Overview
Quarterly (Q4 FY25 vs Q4 FY24)
| Metric | Latest Qtr (Mar 2025) | YoY Qtr (Mar 2024) | QoQ (Sep 2024) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | ₹171 Cr | ₹154 Cr | ₹163 Cr | +11% | +4.7% |
| EBITDA | ₹3 Cr | ₹5 Cr | ₹4 Cr | -40% | -25% |
| PAT | ₹0.65 Cr | ₹0.01 Cr | ₹0 Cr | +6400% (low base) | Turnaround |
| EPS | ₹1.09 | ₹0.12 | ₹0.01 | Huge % jump | 9,000% |
Annualised EPS = ₹1.09 × 2 = ~₹2.18 (since half-year). CMP = ₹18.8 → P/E ~8.6× (actual). But screener shows inflated 94.7× TTM because of weak FY25 earnings.
Commentary: Sales look decent, but operating margins keep shrinking. It’s like running on a treadmill — energy spent, distance covered = 0.
5. Valuation (Fair Value RANGE only)
- P/E Method: Normalised EPS ~₹2. At even 10–15×, FV = ₹20–30.
- EV/EBITDA: EV = ₹74 Cr, EBITDA FY25 = ₹7 Cr. EV/EBITDA = ~10. Reasonable.
- DCF: With wafer-thin margins and 5% sales growth, FV doesn’t stretch beyond ₹25–35.
Fair Value Range: ₹20–35(For education only, not advice.)
6. What’s Cooking – News, Triggers, Drama
- IPO (FY23): Raised ₹53 Cr at ₹100 per share. CMP today ₹18.8. Investors crying in EMI.
- Management Changes: CFO reshuffle in 2023, new independent director appointed Aug 2025. Independent directors resign faster than employees at Byju’s.
- Store Expansion: 80 stores already; expansion in Andhra Pradesh possible, but capital constraints + low margins = risky.
- Dividend Yield: 1.3%. Basically, “Chhota recharge” to keep investors interested.
7. Balance Sheet
| Metric | FY25 |
|---|---|
| Equity Capital | ₹19 Cr |
| Reserves | ₹56 Cr |
| Debt | ₹45 Cr |
| Total Liabilities | ₹138 Cr |
| Fixed Assets | ₹37 Cr |
| Other Assets | ₹101 Cr |
Commentary:
