Why is Brightcom’s stock increasing in value? Is it the right time to buy it or should you avoid it?
Big corporations including Airtel, Coca-Cola, Hyundai Motors, ICICI Bank, LIC, Maruti, and online publishers like Facebook, LinkedIn, MSN, Twitter, and Yahoo! use Brightcom Group’s Digital Advertising solutions. Businesses all across the world can use the company’s IoT-based solutions.
The corporation has been reporting excellent revenue and profit growth for several years. Over the previous ten years, earnings have increased at a nearly 25% compound annual growth rate (CAGR). The ROE and ROCE ratios were both in the double digits. The company’s debt on the balance sheet was also decreasing. Brightcom is a debt-free firm right now!
Brightcom’s stock price, on the other hand, never responded to these favourable events and the company’s size grew. However, it has now provided the corporation with what it lacked previously, namely outperformance and a growing share price. Surprisingly, all of this occurred in just a few months!
On May 31st, 2021, the stock was selling at roughly Rs 6.70 per share. Since then, the company’s stock has appreciated dramatically. Shareholders could scarcely have predicted that all of the rallies would occur in less than a year.
Brightcom is now selling at roughly Rs 160. (as of December 10th, 2021). The stock has returned about 2,200 percent to its stockholders since the beginning of the current year. 1 lakh invested in the stock on January 1st or May 31st (at the same price of Rs 6.7 on both days) would now be worth over 20 lakh.
So, what exactly has happened to Brightcom Group?
The corporation awarded bonus shares to its owners in the middle of 2021. The bonus is a better deal for the shareholders than a split. For every four shares owned by stockholders, they awarded one bonus share. That was the company’s first action in 2021.
Brightcom Group has offered new equity shares to international and other investors. They were given about 14 crore shares at a price of Rs 37.7 each, for a total of Rs 530 crore. Brightcom has a market capitalization of barely Rs 360 crore by the end of 2020! As a result of the large fundraising, the stock price is also rising.
In addition to the new stock offering, the business also issued 1.5 crores in warrants to Shankar Sharma (vice-chairman of First Global) at 37.7 rupees each. These warrants can be exchanged for the equivalent number of shares of stock.
Brightcom has raised a significant amount of money, which will be used to support growth ambitions (through both organic and inorganic routes).
Brightcom has been a strong performer, and several new large investors have recently joined the company’s shareholder list. That is a good thing, and it will pay off in the long run.
Will the stock of Brightcom continue to rise?
When the shares of Brightcom were offered for less than Rs 10, the values were undeniably favourable. However, there were two worries in the corporation at the time.
1) Promoter Holding is Low!
When the market capitalization was too little, the promoters didn’t even own 40% of the company’s shares.
2) No Shareholder Reward!
The firm was making a lot of money and had a lot of cash on hand. The company’s reserves had likewise ballooned out of control. Management, on the other hand, did little to pleasantly reward shareholders.
Market participants may be disregarding low promoter holding concerns since well-known investors have entered Brightcom shares. Brightcom recently issued bonus shares, which is an excellent way to reward shareholders.
The firm was severely undervalued in the stock market prior to the current surge. As a result, even after a large Buying, the firm does not appear to be overpriced or costly at present prices.
However, because the company has had such a large rise, the possibility of a large drop in the share price will always exist.
Investing.com is the source for this information.
Brightcom’s earnings in the second quarter doubled to Rs 212 crore.
Brightcom Group, a leading edtech company, recorded a 106 percent increase in net profit to Rs 212.15 crore for the second quarter ending September 2021, up from Rs 103 crore the previous year. Its consolidated income increased by 73% year on year to Rs 1,103.86 crore in Q2 FY22, compared to Rs 639.66 crore the previous year. On an annual basis, the company’s Return on Equity (ROE) has achieved 16.45 percent.
For the quarter, the combined tax rate across all geographies was 27.06 percent. Due to increased consumer usage of digital media and digital channels for transactions throughout the world during the epidemic, there has been a significant increase in income and profits. For digital marketers, more online sales resulted in a higher eCPM (Effective Cost Per Impression). Filtering technologies have come to a halt across the business, resulting in a decrease in false traffic. It has also aided in the advancement of eCPM.
Brightcom has direct ties with over 200 advertising agencies throughout the world on the demand side. The company’s network has expanded to more than 60 billion monthly impressions. The Adtech industry’s prognosis has significantly improved over the last year and continues to be positive. To solve important difficulties in the AdTech market, the business will continue to build platforms and solutions.
The Hans India is the source of this information.
Brightcom Audio’s President will be Satish Cheeti, and the stock will touch the upper circuit.
On Sunday, Brightcom Group announced the appointment of Satish Cheethi as President and Business Head of the newly formed Brightcom Audio division.
Satish Cheethi was previously the CEO of the Ramky Group’s Ramkey Reclamation & Recycling Ltd. As a subsidiary of India’s largest waste management firm, he established a formal recycling business and oversaw the company’s digitalization efforts. Satish was formerly the co-founder and COO of Cheethi Data Science and Invty Insights, Scient Ltd’s machine learning subsidiary.
He worked for Delphi, aided the M&A Group, and oversaw a massive restructure involving over 4000 personnel across four continents. He also worked at PricewaterhouseCoopers and Fiat Chrysler Automobiles, where he advised CEOs of numerous Fortune 50 firms on strategy and operations, according to the corporation.
Satish graduated from the University of Michigan (Ross Business School), Texas A&M University, and Osmania University with degrees in management and advanced engineering (India).
Brightcom Group Ltd touched the 5% upper circuit at Rs 79.15 per piece at roughly 11.09 a.m., up Rs 3.75 or 4.97 percent from its previous closing of Rs 75.40 on the BSE.
“I am thrilled to join the Brightcom Group as we continue to expand in revenues by adding great digital audio capabilities,” Satish Cheethi stated. We’re now in a unique position to provide edtech solutions to digital media companies, allowing them to monetize their traffic and make revenue from ads targeting their specific audiences. I’m looking forward to developing customer potential while also contributing value to the firm.
“With the appointment of Satheesh to the job of Division Chief, Brightcom Audio, I am sure that we have the appropriate leaders in driving our plan for the next growth,” Suresh Reddy, President and CEO, Brightcom Group, stated. BCG in digital audio, huh? He will help in the ongoing purchase of Digital Audio Target Company in the United States. Satish will remain the division’s operational head following the takeover. His mission is to create a comprehensive game plan for the company to become a major player in the audio section of digital advertising in the next years. He has the proper attitude and experience to lead the organisation through this period of transition.”
With over 204 million listeners in the United States alone, Brightcom Group is researching the digital audio arena, which is likely the second most popular pastime. Nearly half of Millennials and GenZ listen to digital material while conducting their daily tasks, making it the perfect multitasking media channel. Advertisers are tracking users as more people join the bandwagon.
Indiainfoline.com is the source for this information.
Brightcom Group’s stock has soared 118 percent in only 18 days; here’s why.
Brightcom Group’s stock was locked 5% on the upper circuit at Rs 74.55 on the BSE on Thursday, which was also a 52-week high. The shares of the smallcap information technology (IT) software business closed in the upper circuit for the ninth day in a row, climbing 55 percent during that time.
Brightcom Group is currently listed on the BSE under the T Group. Each trade in the T2T segment results in a delivery, and intraday netting of holdings is not permitted. According to the statistics, a total of 1.03 million equity shares had changed hands over the counter as of 01:31 p.m., with purchase orders pending for 2.16 million shares on the NSE and BSE.
The stock has doubled in value or 118 percent in the previous 18 trading days, allotting equity shares to foreign portfolio investors (FPIs) and warrants to high net worth individuals, from a low of Rs 34.39 on September 13, 2021. It has risen 1,006 percent in the previous six months, compared to a 20.5 percent increase in the S&P BSE Sensex.
Brightcom Group announced the preferential offer of 140.15 million equity shares to Foreign Portfolio Investors (FPIs) and other investors at a price of Rs 37.77 per share on September 16, 2021. Shankar Sharma, Vice Chairman and Joint Managing Director of First Global, was also given a preferential allocation of 1.5 crore warrants at Rs 37.77 per share by the board. For more information, go here.
Citrus Global Arbitrage Fund, Calypso Global Investment Fund, Navigator Emerging Markets Fund, Concor Investment Enterprises Ltd, and LGOF Global Opportunities Ltd are among the companies that have received a preferential allocation of 20 million equity shares.
In the year 2021, the Brightcom Group has seen a lot of changes. To achieve material growth, a corporation must pay off all bank debts and become debt-free. The corporation issued bonus shares in a 1:4 ratio, meaning that one bonus share was issued for every four equity shares owned by the company’s stockholders.
Direct marketers, brand advertisers, and marketing agencies can use Brightcom Group’s (previously Lycos Internet Limited) full online or digital marketing services. Media (ad-tech and digital marketing), software services, and future technologies make up the company’s three core businesses. End advertisers, agencies, and publishers are the company’s core customers, although it also works with ad exchanges and networks.
Brightcom’s customer list includes some of the most well-known companies in the industry.
Airtel, British Airways, Coca-Cola, Hyundai Motors, ICICI Bank, ITC, ING, Lenovo, LIC, Maruti Suzuki, MTV, P&G, Qatar Airways, Samsung, Viacom, Sony, Star India, Vodafone, Titan, and Unilever are among the companies that have made significant investments in India. Havas Digital, JWT, Mediacom, Mindshare, Neo@Ogilvy, Ogilvy One, OMD, Satchi&Satchi, TBWA, and ZenithOptimedia, to mention a few, are among Brightcom’s clients.
Business-standard.com is the source for this information.
Brightcom’s first-quarter revenue increased by 4% to Rs 105.5 crore.
Brightcom Group, a digital marketing firm based in Citi, recorded a net profit of Rs 105.5 crore for the first quarter ended June 2021, up 4.11 percent year over year. The company’s consolidated revenue for the quarter under consideration was Rs 654.05 crore, up 2.27 percent over the previous quarter. For the quarter, revenue from the Digital Marketing division totaled Rs 566.07 crore, up 7.89% from the previous fiscal.
Profit before tax was Rs 142.79 crore, up 3.18 percent from the previous year. The profits per share (EPS) for the consolidated company was Rs 2.08. Meanwhile, the company’s publisher acquisition team has a new leader. It created B-Local Exchange, an ad exchange focused on online news media in the United States. Google Advertising has added the firm as a new MCM partner.
Brightcom’s consumer goods branch is also concentrating on the IoT market. “Our LIFE product is dedicated to the future of communications and information management, in which commonplace items, also known as the “Internet of Things” (IoT), will be connected to the Internet,” the business stated in a statement. EY was doing financial and accounting due diligence on the prospective transaction, according to the company. “It appears that their business is expanding while due diligence is being completed,” the firm stated.
The Hans India is a source.
The Brightcom Group has acquired a digital marketing firm.
Hyderabad-headquartered A Letter of Intent (LOI) has been signed by Brightcom Group to buy a digital marketing services firm. Because of the LOI clause, the purchased firm, which is situated in India and has 1,100 workers, has been kept secret. Customers include Netflix, Disney, Bitly, Hulu, and The New York Times.
Following the completion of typical business, legal, and financial due diligence, a formal settlement will be reached. Customers turn to Target Company for product strategy, product development, and operational assistance. It works with creative agencies, media purchasing businesses, and analytics suites to produce outcomes for leading brands in display, video, and mobile advertising for advertising agencies and publishers.
They have offices in India, the United States, and Europe. Their presence in the United States and Europe allows them to keep up with the newest advertising trends in mature markets. The firm runs on a retainer and service basis, and the corporation actively participates in reaching out to potential consumers.
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