Strong BUY BCG cmp 17.45, target 22.50/26.50 in few days
Brightcom Group Ltd(BCG) offers digital marketing solutions to businesses, agencies and online publishers worldwide.
Services Provided:
The Company is divided into three major divisions:
a. Ad-Tech and Digital Marketing:
The services include Video Advertising, Display Ads Marketing, Performance-based Marketing, Search Marketing, Email Marketing and Lead Generation, Afliate Marketing, Social Marketing, Mobile Marketing, Niche Campaigns, Digital Trafc Management, Ad Serving
b. Software services:
The Company’s software services include developing customized technology platforms to solve specific needs of clients primarily around digital media and other related offerings
c. Future technologies:
The company’s future technologies division consists primarily of the Company’s LIFE product and developments in artificial intelligence, machine learning and Digital Out of Home(DOOH) advertising.
Revenue Breakup - Q1FY24
Advertising Revenue : 94%
Software Revenue : 5%
Other Revenue : 1%
Interim Order By SEBI
An Interim order was passed by SEBI on 22.08.23 related to concerns regarding preferential allotment made by the company in FY20 & FY21. They suspected that money raised were given as loans and advances to its subsidiaries. It was also alleged that proper disclosures were not made in the Annual report and also disclosures related to preferential utilisation were not made. Post this the entire management of Brightcom has stepped down.
Forensic Audit:
SEBI ordered Forensic Audit of company on 16/09/2021 and Deloitte Touche Tohmatsu India LLP were appointed as forensic auditor w.r.t the financial statements from FY 2014-15 to FY 2019-20. The said Forensic Audit is under progress and the final outcome of the investigation is yet to come by the time of certification
Market Cap - ₹ 3,513 Cr.
Book Value - ₹ 34.7
Price to book value - 0.51
Debt - ₹ 0.00 Cr.
EPS - ₹ 7.01
ROCE - 30.9 %
Stock P/E - 2.51
Industry PE - 34.1
Currently the stock is terribly undervalued and we feel all the negatives is deeply discounted and technically it completely bottomed out at this valuation. We have recently the strong buying appearing and there is a good buying pattern emerging. So we strongly suggest a buy in BCG shares at 17.45 and buy till 18.5 for a target of 22.50 and 26.50. Valuation wise even at 26.5 its a buy but technically these are the resistance levels appearing. Stop loss 16
Services Provided:
The Company is divided into three major divisions:
a. Ad-Tech and Digital Marketing:
The services include Video Advertising, Display Ads Marketing, Performance-based Marketing, Search Marketing, Email Marketing and Lead Generation, Afliate Marketing, Social Marketing, Mobile Marketing, Niche Campaigns, Digital Trafc Management, Ad Serving
b. Software services:
The Company’s software services include developing customized technology platforms to solve specific needs of clients primarily around digital media and other related offerings
c. Future technologies:
The company’s future technologies division consists primarily of the Company’s LIFE product and developments in artificial intelligence, machine learning and Digital Out of Home(DOOH) advertising.
Revenue Breakup - Q1FY24
Advertising Revenue : 94%
Software Revenue : 5%
Other Revenue : 1%
Interim Order By SEBI
An Interim order was passed by SEBI on 22.08.23 related to concerns regarding preferential allotment made by the company in FY20 & FY21. They suspected that money raised were given as loans and advances to its subsidiaries. It was also alleged that proper disclosures were not made in the Annual report and also disclosures related to preferential utilisation were not made. Post this the entire management of Brightcom has stepped down.
Forensic Audit:
SEBI ordered Forensic Audit of company on 16/09/2021 and Deloitte Touche Tohmatsu India LLP were appointed as forensic auditor w.r.t the financial statements from FY 2014-15 to FY 2019-20. The said Forensic Audit is under progress and the final outcome of the investigation is yet to come by the time of certification
Market Cap - ₹ 3,513 Cr.
Book Value - ₹ 34.7
Price to book value - 0.51
Debt - ₹ 0.00 Cr.
EPS - ₹ 7.01
ROCE - 30.9 %
Stock P/E - 2.51
Industry PE - 34.1
Currently the stock is terribly undervalued and we feel all the negatives is deeply discounted and technically it completely bottomed out at this valuation. We have recently the strong buying appearing and there is a good buying pattern emerging. So we strongly suggest a buy in BCG shares at 17.45 and buy till 18.5 for a target of 22.50 and 26.50. Valuation wise even at 26.5 its a buy but technically these are the resistance levels appearing. Stop loss 16
Trade closed: stop reached:
after buy call given it went to 19.90 the very next day and then due to market conditions, it went down and stop loss of 16 triggered. Now its a buy only above 20 levels.