The shares of Brightcom Group Limited have managed to bring a dreamy return to its investors in the last year. The scrip went to 189 on January 19th, 2022, from Rs 6.49 on January 19th, 2021.
An amount of 1 lakh invested in this multibagger stock a year ago would have turned into 29 lakh today. The stock has climbed over 7000 per cent in the last three years, as well as generating over 2800 per cent return in the last year.
With a market value of more than Rs 18,600 crore, the shares are higher than 50 day, 100 day and 200 day moving averages, but lower than 5 day and 20 day moving averages.
The stock is under profit booking zone after the announcement of bonus shares, according to Dr. Ravi Singh-Vice President and Head of Research, ShareIndia. It may touch the level of 173 -- 171 in the next trading sessions. The stock may witness support near 170 levels and fresh volumes may trigger lower levels.
Manoj Dalmia Founder and Director of Proficient Equities Limited said that the company aims to create a free cash flow of Rs 250 crore by June 2022. The company has ROE, ROCE and 15.6% of debt and 21.6% respectively. The promoters have decreased stakes over the year.
He said that there can be an upside up to Rs 215 if closing above Rs 193 happens and it can come down to Rs 162 to take support.
Ujjawal Kumar, Research Analyst, Green Portfolio, said that there are a lot of corporate governance issues with the company and therefore his view of the company and management is very negative.
He noted that the quality of accounting disclosures is very poor. There isn't a lot of clarity on capital work in progress, intangible assets, etc. The promoter stake has been reducing consistently and there is almost no presence of FIIs DIIs on the shareholding, which is worrisome for a company with close to 20 k crore of market cap.
BCG s investments in subsidiaries recorded at the cost value and return on equity are not encouraging. The financials of the subsidiaries were not regularly audited. The company is not very investor-friendly and the dividends are far and few. He said investors should not skip this stock because of these reasons.
Earnings Q 2
The company's consolidated revenue increased by 73% to 1103.86 crore in Q 2 FY22, as opposed to 639.66 crore in Q 2 last year, due to increased consumer usage of digital media and digital channels to conduct commerce across the world, post the Pandemic.
The company said that higher online sales led to better eCPMs effective cost per impression for digital marketers. Profit for the quarter increased to 212.15 crore from Rs 103 crore in Q2 last year.
Brightcom Group said that the outlook for the adtech business has improved dramatically in the past 12 months and continues to be very strong for the next period.
The company has a lot to say about it.
Brightcom Group is a global provider of comprehensive online and digital marketing services for marketers, brand advertisers, and marketing agencies.
The company is divided into three major divisions: i Media Ad-Tech and digital marketing, ii Software services, and iii Future technologies. End advertisers, agencies and publishers, Ad Exchanges and Networks are its primary clients.
The clients of Brightcom include Airtel, British Airways, CocaCola, Hyundai Motors, ICICI Bank, ITC, ING, Lenovo, LIC, Maruti Suzuki, MTV, P&G, Qatar Airways, Samsung, Viacom, Sony, Star India, Vodafone, Titan, and Unilever.