[Logan]

@Rathi_b, thanks for your reply. Hope we’ll see actions soon. This is a very good time for tech company stocks, if the CEO takes good decisions then surely the market will reward the company.

[Deepak]

Why fb page of brightcom still using the same logo. Whereas the brightcom uploaded the updated one.

[vgsatwork]

Just now I was checking trade desk financials and it’s valuation. It’s revenue is 80% more than BCG and profit margin is same as BCG and it’s growth rate is better than BCg, but current liability is more than it’s revenue. It’s clear that this business needs tons of cash as working capital. so, for a company in same segment, comparable size, market is paying 200 times forward P/E multiple and still has buy rating from analysts at this valuation.

Comparable figure for Brightcom (back of the envelope calculation) in terms of valuation would be around 2500 rupees. It is clear that BCG has to address the cash flow issue by getting LOC in order to grow (top line) and once it gets the LOC and manages to show the top line growth, value realization should start happening…

[VALUEBUYER001]

Valuation in Rupees and USD may not be equal.bcg is no doubt undervalued and TTD is surely over valued. Even if we give a reasonable valuation bcg deserves a price of ₹ 300 to ₹400

[Logan]

@vgsatwork, the industry that BCG is in is still growing, it’s not an old industry to give companies P/E of 5 or P/S of 1.

When Magnite Inc was trading at 4 times revenue (P/S-4), Motley Fool website called it undervalued. Magnite has losses but it’s revenues are growing. Only thing that’s not working for BCG recently is that the growth rates are low but if you see the growth rates between 2010-16, they were very good and the margins are also better than many other companies. So BCG should get at least 3-5PS or 10-15PE. If the growth rates are higher in the future then BCG should get higher PE.

If sold, OMS alone will get you close to 5000crs (P/E-20 or P/S-5).

[Sobha]

@Rathi_b, Thank you for your efforts. What will be the eps dilution after warrants? Have any discussion in this regard? Because Rs 260 cr reaching to company. I assume it will increase eps by 20%.The LOC will increase eps by 30% as per skr. Plus the interest outflow on loan of the parent is going to be zero. So what will be be the eps after proposed full dilution? And what is the expected growth rate after LOC and warrant money?

[bhalothia9]

@rathi_b Thanks for representing all of us. Good to hear all updates, could you please also update if there was any discussion on business, also where would company use the money that it will get for warrants?

[Rathi_b]

Let’s hope they give us something back. Hehhehe man I hope next dividend us not 5 anna. We have to see how the company’s business does in the next 2 quarters to properly get an idea of eps.

[Rathi_b]

To be honest I think we Hyderabad should start an irani cafe outside Holiday inn so that the price keeps rising. Salute SKR every morning and evening if it helps the price to increase and get a good dividend.

[sandyc316]

lol! @Rathi_b I’m sure we’ll all happily agree to help you start that cafe!

[Raj]

Looks like every one are waiting for axis settlement news 😊

[vgsatwork]

Given the sudden spurt in volume of trades at around noon on both the stock exchange seems to suggest that nclt hearing has had a definitive closing..Will have to wait and see

[drjaysee]

Dear @Rathi_b, now we guess what your reply means by seeing today’s rally “read between the lines you will see something that doesn’t meet you eyes in the first glance”. Definitely we will get series of positive news from tomorrow onwards before the AGM. Happy investing to all BCG investors.

[VALUEBUYER001]

Axis nclt hearing is today. I feel BCG will close axis dues. Let us wait and see

[vgsatwork]

Just to give an idea of the kind of delivery based trades on last 10 trading session (Since PW announcement) from NSE alone – 10.75% of entire equity base of BCG (5.46 crore shares) have been delivered. Traded volume is 7.2 crore shares in NSE alone in the last 10 trading session.

Assuming the big hands have not sold their stake, 10.75% of retail shareholders stake has changed hand in the last 10 trading sessions alone (that too only in NSE). It would interesting to know who has picked up this 10.75%. I am sure this level of retail to retail churn is not possible without huge price action. But the price pretty much remained the same except for today.

This indicates systematically some large investor or institution has picked up atleast half of this 10.75%. Keen to see the SHP for this Qtr…

[bhalothia9]

@vgsatwork. All this trade, shows as delivery or as non delivery I believe is being done to justify the price at which warrants are issued. Similar level of delivery was shown when shares were allocated to Muskan. And I expect 80% of shares are being rotated between large investors, small retail investors shareholding most likely will have minor effect.

[bhalothia9]

In Corporate action on bseindia:
EX Date Purpose
18/12/2020 Final Dividend 0.05

Could this be the reason for today’s rally in BCG price?

[Rathi_b]

@bhalothia9 wait for January to end. Hahahaha we will go crazy.

[Sobha]

It cannot be. Those who buy today will not get dividend. May be NCLT.

[bhalothia9]

I wish your prediction is right @Rathi_b . 2
Haarne ka darr aur jeetne ki umeed … in dono ke beech joh ek tension wala waqt hota hai na … kamaal ka hota hai.

[Author]

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