[Logan]

My problem was with one person not showing respect to everyone (the whole forum) by saying things like – “this forum is also infected with vested interests”.

Every member here has put his/her hard earned money in this stock and they have the right to share their opinions. Nobody made any comment that would lead to the forum being called like that. Just because someone doesn’t agree with some opinions doesn’t have to mean they can write whatever they want.

No need for diverting the topic by talking about 3 digits or 4 digits. Respecting others should be the same regardless of price. Let’s end this here. I don’t want to drag this silly topic any further.

[Rishi_life]

@Raja when everyone was talking bullshit about BCG it was this forum which gave support to the truth and investors. And now too if someone expecting a better results than what is flattish according to him..is that anything wrong in that?

Further, this group never recommends target price 3 digit or 4 digit, we only discuss the facts and future….

By mentioning results are lower than expectations doesn’t mean we don’t know the future events or we doubt the company…it’s only about past 3 months performance and nothing more…

Hope you agree…and belive me this forum just want to share the truth and potential nothing else…

[vgsatwork]

Key ingredient for sustained stock price upmove is growth. Bottom line would come as long as there is growth in topline revenue. With most of the ad-tech companies top line is growing at 30-40% YoY and in turn are commanding rich valuations. In the case of BCG one can understand muted growth when the had problems with NPA loan, share pledge, etc. Now for the last 1.5 years they have been raising capital through preferential route and some of the legacy issues have been sorted out. But now if the top lines does not grow at a rate comparable with industry peers, there would be immense selling pressure with stock upmove and the stock would not be able to sustain at higher levels due to muted growth.
Hence I sincerely hope that they close the LOC by early September to take advantage of the best quarter for ad-tech industry (oct-dec quarter) and show impressive topline growth. This is more important than Nasdaq listing, ESOP, Preferential allotment, etc,. If they miss this window, they would miss the boat (from the perspective of growth) for another year.
Market may not take this result kindly (Given that diluted EPS is about 4 rs now – post preferential issue and bonus). For a trailing PE of 10 and trailing P/BV of over 2 (at current market price of 40), BCG would have to show 15+% topline growth and close that LOC on priority basis, if that is the solution to growth problem. Otherwise sustaining current market price for 2.1%YoY revenue growth would be an uphill task and it would come down significantly from current level.

Growth is the only thing that can sustain this rally/Value realization. Without growth, it would come crashing down to mediocre valuations.

[Logan]

I wish everyone a very happy Independence Day. Hope everyone becomes financially independent because of BCG.

Jai Hind.

[Rishi_life]

@Logan any idea What is this other comprehensive income which is 38 cr… And because of that the total comprehensive income raises to 144 cr. Because of which QoQ increased by 20 cr and YoY increased by 38 cr.

[hw_tw]

Congratulations to SKR on BCG family growing to 1 lakh investors mark…and congratulations to fellow long term investors who boarded this early… this is one of the item which he tracks pretty closely and close to his heart. I guess he will be pretty excited about reaching this milestone and the speed with which this community has grown in recent days.

Thanks to @admin, @Logan and all other fellow members who are contributing to a useful, healthy and insightful discussions and helping this investors community stay strong in tough times and helping it to grow

Leaving aside the difference in opinion on increase of retail investors and their stability, I feel the pros will be

– BCG is now known to more retail investors than ever before

– Increase in awareness of the adtech, digital marketing business

– Increased confidence in the future of this business

– Most importantly it also shows increased confidence in credibility of BCG’s numbers

Hoping this would soon attract big fund houses and other stable long term investors

[Logan]

@Rishi_Life, it’s because of fluctuations in rupee vs dollar. There’ll be an increase in value of BCG’s subsidiaries’ assets when dollar rises and BCG reports them as other comprehensive income. If there’s a decrease in dollar then there’ll be little losses. I think they do it as per SEBI rules.

The CFO talked about this in one of the conference calls (don’t know which quarterly call exactly). If you have recordings of those then you can listen to them so that you get a better understanding.

Importantly those income/losses aren’t from operations and that’s why companies report them after PAT.

[admin]

@conservative_indian sir has started telegram channel from today. Please see his below message.

Moneycontrol is not allowing my ID to publish any post. Even simple one line post without any weblink is getting removed immediately after posting. Any one can search Value2Wealth or conservativeindian as key words in telegram to search. We can share to reconnect. Thank you.

[explorer]

Based on the hints given by SKR, Mediamint is likely to be the company that is being considered for acquistion. They have their presence in US and Europe(Poland) and they have over 1100 employees. They work with Hulu, Disney, Netflix, Pinterest etc., The services offered by them(product strategy, product development and operational support needs) align with the description provided in the company’s LOI disclosure.

If the speculation is true, it is a great news for us. From my analysis, they work for the same industry but offer distinct services and so they will complement each other well. With cross-selling services to the existing customers of both companies, I can foresee the future EPS that SRK promised.

https://www.mediamint.com/

They have shown tremendous growth in the recent past(based on head count growth)

Attachments:

1. 

   mediamint.jpg
   

[vgsatwork]

@explorer

Looking at all the customer, employee headcount, industry/service offering, etc,. it appears that BCG is targeting to buy mediamint.

[hw_tw]

@explorer – Good find. I guess this is the company. Lot of things are matching.

I could see some of MediaMint employees working with Netflix, Hulu, Disney etc;

This is the profile of one of their ex employee…he has mentioned all these companies

https://chirucreater.wixsite.com/chiranjeevi

[anand84sharma]

Vuchi Media Private Limited is a Private incorporated on 27 July 2010. It is classified as Non-govt company and is registered at Registrar of Companies, Hyderabad. Its authorized share capital is Rs. 5,000,000 and its paid up capital is Rs. 226,370. Vuchi Media Private Limited’s Annual General Meeting (AGM) was last held on 31 December 2020 and as per records from Ministry of Corporate Affairs (MCA), its balance sheet was last filed on 31 March 2020.Directors of Vuchi Media Private Limited are Aditya Vuchi and Neelima Marupuru.

Mediamint is registered under Vuchi Media Private Limited and turnover for march 20 is 86,99,60,796 and net profit after tax is 18,79,81,063.

[anand84sharma]

Consolidated Financial statements duly authenticated as per section 134 (Including Boards report, auditors report and other docu-14042021.pdf

Attachments:

1. Consolidated-Financial-statements-duly-authenticated-as-per-section-134-Including-Boards-report-auditors-report-and-other-docu-14042021.pdf

[vgsatwork]

@anand84sharma

Thanks for sharing the details from registrar of companies. I was hoping that the revenue would be around 500-600 Crore assuming the typical revenue productivity in IT services company. But this revenue seems to be only about a 5th of what I was expecting as revenues with average revenue per employee seems to be around 1000$/month as opposed to 4000-5000$/month revenue productivity seen that is typical in IT services company. Though these numbers are from 31 Mar 2020, still the company had headcount of about 950. Hence do not expect the revenue numbers to change drastically from the current numbers (31st Mar 21 Revenue with about 1100 employees could be at the max 100 crore and the profit should be about 40 crore or so). Assuming that being the case, overall BCG might pay about 200 Crore for this acquisition.

[Brightspot]

Last conference call Suresh reddy mentioned new acquisition would be combination of cash + Equity, can someone explain how it is going to be? what is the process for acquiring equity?

[vgsatwork]

@Brightspot

New shares would be allotted to the owner of the company being acquired based on the Stock % of the deal. Assuming the deal is for 200 Crore with 20% stock component, then company would issue shares worth 40 crores (based on established pricing mechanism, like how it was done for preferential warrants) to the owner(s) of the company being acquired – The process would involve share holders voting & approving the new issuance of shares to the individual. Easily 2+ month timeline for Board meeting announcement, Postal ballot timeline, Approval from exchanges, etc,..

[akkithegrt]

can anyone tell me ,will my buying price remain same after bonus shares are issued or will it change by same ratio as the stock price that is 20 percent.My buying price is 15 so will it change to 12 after bonus is issued?

[radhutheoptimist]

Some urgent advice required. If I buy today will I be eligible for bonus shares? There were some comments in mm forum which states as 19th is a holiday and because T + 2 restrictions those who purchase today will not be eligible for bonus shares. Is that true… Please let me know. Thamks

[anand84sharma]

@akkithegrt

Buying price will be 15 for current/existing share of BCG and for bonus share buying price will be zero/nil as per Income Tax Act 1961.

[Investor_2022]

Whoever will buy today will be eligible for bonus.
If you buy tomorrow then you won’t get bonus shares.
(FYI, from tomorrow price will be adjusted as per bonus ratio, means reduced by 20% of today’s closing price)

[Author]

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