[hw_tw]

Thanks for the details @vgsatwork…not sure how many people are looking at this event and considering it as a positive event.

As you mentioned hoping some large investors take a note of event and take the price up

At present the MC board seems to be worried about individual bonus shares …but these seems to some small investors invested just for bonus shares and not looking at any other positive aspects of the company

[hw_tw]

My views on the “Growth” aspect

We saw a glimpse of Growth in Q4-FY21. The commentary from SKR mentioning that there were some operational efficiencies combined with sales gave an assurance that it would sustain in coming quarters, but the same was not visible in Q1-FY22

We don’t know whether it is an one-off event or if SKR was projecting numbers considering acquisitions too.

Note that apart from Covid uncertainties there was a war situation in Israel and not sure if there was a impact because of this. Hopefully we will get some clear answer from the Tuesday’s call.

Leaving the organic growth aside, I am more bullish on the in-organic growth aspect.

We all know that adtech is one of the industry which is poised to grow big with increased no. of digital devices, their adoption, increased screen time, 5G etc;. This is a phenomena across the world.

While the external growth factors are all looking positive, what is important is the internal growth factors. I believe the following are some of the important factors which contribute largely to the growth of BCG or for that matter any company

1/ Right Products and Services
2/ Brand
3/ Sales team
4/ Implementation team
5/ Capital

Out of these factors, I guess SKR seems to be mainly looking at item 4 from the new company, but along with this he also is getting items 1, 2 and 3 too. A Digital Marketing Services company who has built their brand with a right mix of Sales and Implementation team. The Sales team is able to bring in marque clients like Netflix, Disney, Hulu etc; and an Implementation team who is able to service them. Note that the bar is pretty high while working with these kind of companies. You will be working with the best marketing brains at the same time these people will be looking to extract every penny out of their marketing budget, the service providers need to have the right mix of talent and the whole team will be required to be on their toes to match to the expectations of these kind of customers.

We need to note that, the new company might not bring in item 5 right away. SKR will be funding this initially from the capital he will be raising from different means including LoC if required.

Once merged, in the medium to long run SKR is confident that together they will be ticking all these growth factors and will be able to go in full speed firing on all cylinders and thus his assurance on the EPS multiples.

In coming quarters, I feel we will be able to see a strong long-lasting Fevicol bond between BCG and Growth.

[hw_tw]

From whatever I see, most of the digital marketing companies are smaller in size with around 50 to 200 employees count… don’t see much of the companies having employee count of 1000 and above

If this deal goes through, I guess Brightcom will be one of the top 5 DM companies based out of India and no. 1 in listed space

Please note that I am referring to this size only in the context of DM segment excluding the Digital Ads and Adtech business

[myainvest]

Looking at the trading pattern there is a high activity of traders in BCG. Maintaining a huge difference between BSE and NSE. And bringing LC in BSE with low volumes, there by making sure it gets locked in LC in NSE too. People like Purvesh, Basu etc are making good money I suppose with shorting/trading. If Mr.Suresh really need to get right valuation as he mentioned earlier, he need to do something for stability of share price. Else with the current number of shares, it will be difficult going forward. Another fall is something, I believe, he cannot afford right now, for getting LOC. Even if it is a weak LC, like 1L or 2L sell order in LC – it comes to around 30L or 60L approximately and not all retail could afford buying it! He needs to do something to bring stability in share price, may be we should ask this question in tomorrow concall. Business may do good with great profits, but reputation / brand value is a serious business and he needs to be very serious about it ! And sentiments of investing community should be taken very seriously !

[nitin_asce]

Another great stock picker put BCG in his watchlist.

IT / Digital / Platforms
~ Sasken
~ MPS
~ Mastek
~ Saregama
~ CAMS
~ OFSS
~ HGS
~ EClerx
~ Aurionpro
~ NIIT
~ Saksoft
~ Trigyn
~ Tanla
~ Matrimony
~ Easy Trip
~ BCG
~ Tips Ind

Textiles
~ Vardhman Textile
~ Sportking
~ Lux

Healthcare
~ Nureca
~ Kovai Medical
~ Jeevan Scientific

— LearnLifeWealthTravel | Dream Big, Think Growth !! (@AnyBodyCanFly) August 23, 2021

[hw_tw]

Thanks SKR for sharing the guidance for the rest of the year. It was a pleasant positive surprise…:-)

Just when everyone thought 30% itself is difficult to achieve 90% year on year organic growth is too much.

I guess it would take a lot of time for your critics to digest this ..:-)

[Rishi_life]

Some unbelievable numbers are shown…and big dream shown in the call….if SKR achieve 50% of what is shown…it would be enough for getting good return for long term investors

[radhutheoptimist]

I don’t understand why peop!e still talking long term. SKR is showing that it is happening and it is happening now. If they can maintain 9 eps for the diluted equity and without considering growth due to acquisition (I liked the qualifying statment)….. That works some peanut PE figure…. Looks like 10x…20x… Figures may become peanuts. It may happen in months time…. Enjoy the forth coming ride👍

[sagraa]

SKR said consolidation promotor stake. Any guess what he is referring to and who will be added in promotor category.

[hw_tw]

My view on the guidance for next quarters and the impact of it

– It is a welcome move and this would totally change the way the existing and new investors look at the future of the company

– If the numbers are any close to the projections for this quarter, it would give a lot of credibility to this company and this should be attracting large investors / MFs

– The growth is higher than general adtech industry growth and also higher than other listed companies like Affle. This should command a higher PE

Coming on to the expectations of meeting these numbers, I feel he would achieve it and some reasons on why he would be achieving it

– He has shared both topline and bottomline numbers. This shows they have lot of clarity on these numbers

– The numbers are shared based on the run rate he has seen in last two months.

– This is the first time SKR has given guidance and I don’t think he would have given such a big growth projections unless and until they are solidly backed by some large long term contracts signed across the board.

– SKR and his team is well aware of the cash constraints they have and what amount of media they have to buy in advance to achieve these kind of numbers. Without this math they wouldn’t have come forward with these numbers

– Also we should note that when a company gives a guidance all their internal team will be working towards these targets and there will be target based incentives for the team

Overall, in my head there is no second thought about what percentage he would achieve it atleast for this quarter.

He might revise the estimations for next quarter or so but this quarter they should be achieving it 100% for sure.

[vgsatwork]

Giving revenue guidance is first real massive step in terms of gaining credibility with Institutional shareholders and Mutual Funds. Institutions would wait till Q2 results to see how accurate their revenue guidance to the actual numbers and based on the same, they may start entering the stock as NO ONE would want to miss a growth stock with 70% YoY sales growth.

From that perspective, it is HUGE positive. Now, people would ACTUALLY start comparing BCG’s valuation with industry peers since the growth is comparable with those companies and hence would see BCG as undervalued stock and would start accumulating this.

[hw_tw]

Looks like BCG has not issued a Press Release about the guidance
numbers…I couldn’t find any news coverage regarding this

It would be good if they release it especially when they are talking about such a stellar growth which beats all analyst expectations

The exchange notification will be viewed only by the existing investors, but a PR would put BCG under the radar of all big investors

[vgsatwork]

@hw_tw

I think they have lot of scope to improve in terms of ensuring no typographic errors/calculation errors, etc. But yesterday’s revenue guidance seems to have been a sudden decision and these oversights could be more because of that. Otherwise, it should have come along with the quarterly results and should have been included in press release along with the result highlights

[ramganesh1982]

Hi all,

Can someone share the latest investors meet audio or video ?

Regards
Ram

[hw_tw]

You can listen to BCG’s Q1-FY22 earnings conference call over here

[Brightspot]

https://www.business-standard.com/article/economy-policy/india-s-digital-infra-invites-global-interest-infosys-s-nandan-nilekani-121082401105_1.html

[ramganesh1982]

Hi hw_tw,

Thanks for the audio post

Regards
Ram

[vgsatwork]

Based on the update given by SKR in the conference call and the revenue guidance for Full year FY22,
– Taking midpoint value PAT of 897 crores (Average of the range provided by the company)
– Assuming equity base of 120 Crore (Revenue guidance assumes only 104 Cr shares, which we know would change once FPI issue is complete)
– Considering the guideline of 20% net profit to be distributed as dividend
We can expect around Rs1.5/- per share (roughly 70% of the face value of Rs 2) as dividend for FY22, that is also a HUGE plus and an indicator given to all the analysts…

[whyShares]

During the BCG’s Q1-FY22 earnings conference call there was talk of SPAC to list BCG on the American Stock Market and Mr. Reddy saying he is “acutely aware of what a SPAC is”. So did a bit of research on what a SPAC is. This video explains it all

[BBPopuri]

Got the bonus shares credited in all my Demat accounts with pending approval for listing/trading. As per the timing of the credit and corresponding mails from CDSL and NSDL my first account with max quantity got the credit yesterday afternoon while the one with lowest number got the mail an hour back and yet to get mobile messages for the last two accounts with least holding. So far it’s only credits in my accounts. Never sold a single share It’s a journey of more than a decade so far LGS – Ybrant – Lycos – BCG.

[Author]

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