[hw_tw]

The IR page of BCG website seems to have recently updated … It now has all the latest and old information which investors can go through

One thing which especially caught my attention is the ownership document of Brightcom Israel / Online Media Solutions … an important document for the people who keep saying that BCG India doesn’t own OMS, Israel

[Raja]

Dear all,
Now only 61.9 lakhs PW is pending – to make balance payment…
Hopefully this payment will come in today or before 17th.
Today is results day. Best wishes

[myainvest]

Many talk about cut off date for bonus as 17th Aug i.e, the last date to be eligible is they should buy shares by 17th Aug, so by 20th they will have shares in their demat account and hence be eligible for bonus shares.

I find it bit strange to believe. I believe someone could buy the shares even on 20th and still be eligible for bonus shares even thought the shares will be credited in their account only on Monday

Does anyone have a view on this ? I could be wrong too!

[vgsatwork]

Missing topline growth in BCG

Despite all the positive news flows and up move in share price, the sore thumb for BCG continues to be topline growth with topline growth in low single digits. If they can start showing 20%+ YoY topline growth, that is when market would feel comfortable giving higher valuations like it’s peers – Affle, Magnite, Pubmatic, Tradesk, etc,.

Given that Management has had 65 crore (25%) of PW money + 30 crores of PI Money (Last year Preferential issue to Muskaan) of cash, I sincerely hope that they show atleast 15% YoY topline growth in Q1 FY22. That would do a world of good to stock prices than the other news items that are lined up. Once people start seeing growth, the trust on management to deliver growth would increase tremendously..

Hoping for a great topline growth today…

[odysee]

@vgsatwork, the management did not have that 95 crore to utilise in 20-21.
The Muskaan preferential money was frozen till March 2021 because of the Axis Bank settlement. The PW money only came in early 2021.
But yes, the company must show healthy growth in the top line from now on, as most past issues are resolved and the cash flow position has improved.

[vgsatwork]

@odysee

I meant that BCG had 95 crore with them in Q1 FY22 and hence should have used that effectively to increase the topline by 15% or more YoY compared to Q1 FY21

[vgsatwork]

2.1% YoY growth on topline. Nothing has changed from the perspective of growth…

[Logan]

Disappointing results compared to last year’s. Last year for Q1 there was a growth of 20%+ but this time it’s flattish. Only good thing (though not to be too excited about) is the 8% growth in revenues in digital advertising.

All adtech companies did very well this quarter except BCG. Usually 1st quarter will be good for BCG and I was hoping to see better results.

[VALUEBUYER001]

Let us hope for growth after acquisitions and loc

[odysee]

I suppose we have to wait for the next conference call to get some bearings on the current performance.
The last conference call was pretty upbeat and by all indications that applied to the June 21 quarter as well. At least as far as expectations went. So we need to understand from the management as to what this slip between the cup and lip was.

[Rishi_life]

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.

Results are lower than expectation.

[Raja]

Results are on expected line, this was indicated by the management that multiple EPS are expected in future.
The growth ingredients are getting in place one by one,
Debt free
PW
Bonus
FPI
New company doing well on growth-being acquired
ESOP
LOC
New business head, etc.,
I have a feeling that this forum is also infected by vested interest, not a surprise considering the potential of this home grown digital marketing global company- having potential to be listed in NASDAQ.
Just compare this result with subex, mastek etc., also compare with their current PE.
Genuine investors enjoy the growth in coming days.
Best wishes to all

[Logan]

(I’m speaking on behalf of all the forum members here)

@Raja, it’s surprising (and little funny tbh) to see your comments – “I have a feeling that this forum is also infected by vested interest”.

Just 2 or 3 realistic comments and you come to this conclusion. You have to be careful when you make comments like that because people can use the same comments against you. They can say that you are hiding the facts and talking only about the “potential” positives that haven’t even materialised.

What I and others have talked about are based on numbers that are in front of us and what you are talking about are assumptions that “may” or “may not” result in growth. I don’t understand how bonus and ESOPs are ingredients for growth. I can understand about LOC, acquisition, being debt-free etc but not bonus and ESOPs.

More importantly Subex and Mastek aren’t really competitors or peers of BCG. Just because some websites and some people put these companies under the same category doesn’t mean they are real peers. If you compare results of “real peers” of BCG then you’ll understand that BCG didn’t perform well.

We didn’t even criticize the company or the management, we just shared our opinions on the results. We didn’t say it was poor either, we said that we are disappointed. There’s a big difference between those two. We have never doubted the efforts of the management team and we have supported them even during tougher times than this. It’s like a football match where the match ended in a draw when we were hoping/expecting a win. Though we’ll be disappointed with the result, we’ll not stop supporting the team, especially when they are putting all the efforts and when they are having problems (mainly cash flow issues).

Everyone can’t be positive for the sake of being positive. When BCG didn’t perform well in Q2 and Q3 we made similar comments and that time no one made a comment like you. Also we were very happy when BCG did well in Q1 and Q4. We even asked the management/CEO about the lack of growth in business in the conference calls too.

For BCG to be properly valued, the business also has to grow. If there’s no growth then the market will give below average valuations. Efforts and results are completely different. Markets won’t give proper valuation just because the company is putting efforts, it’ll appreciate them but ultimately it’ll look at the results. Some people give targets of 500, 1000 or 1500. For 500, considering PW and bonus shares, the P/E will be more than 100. Without growth how can we expect to see those valuations? Companies that have higher P/E multiples have higher growth rates.

We all want BCG to trade at very higher valuations but that should happen based on merits and not based on hypes or assumptions. The management team is doing everything that they can to grow the business, sometimes it’ll result in good growth and sometimes it’ll be flattish. We have to accept that fact.

Everyone talks about NASDAQ all the time but there also BCG will be valued well when it shows good growth rates. Before getting listed there, they should get a proper rating here and for that to happen the company should show good growth rates.

[Raja]

Dear all,
Please check the latest press release from the company dated 13th August 2021 *BRIGHTCOM GROUP ANNOUNCES STRONG Q1 RESULTS* – bse website.
I will post again in this forum after BCG touches 3 digits – maybe 2022 or earlier. (since in the previous msg ONE member was talking on behalf of EVERYONE)
Best wishes to all long term investors

[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

[Author]

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