[nitin_asce]

I was not able to attend the concall. Does anybody have youtue link of concall recording.

[JackSparrow13]

^Searching for same.

[JackSparrow13]

One the funniest criticism i have read is Q4 revenue is so less vs Q3. When learned people criticise using big issues like Daum, Bonus, acquisition, cash flow, debtor days, etc etc, and include Q3-Q4 sales comparision in the list, i feel like laughing.

[hw_tw]

Q4 FY22 Conference call recording

[radhutheoptimist]

As per Morningstar closer to 28 million shares were added by funds and institutions in May 2022 alone. 16 entities were new additions. Every month they are adding more than 1% of total equity. Can’t understand the game plan of the operators going by today’s trade. Is it going to be another year of painful wait?

https://www.morningstar.in/stocks/0p00015zpv/nse-brightcom-group-ltd/overview.aspx

[hw_tw]

Vanguard has added significant portion recently. The initial estimates were to add around 85 lakhs but they have added more units subsequently and are holding around 1.85 crore units

As per StockEdge bulk deals list Vanguard has never made a bulk deal in BCG, but they were still able to gather large quantity / crores of units … Could this be a case of direct transfer from promoters …🤔

https://sedg.in/9u43kx6i

Apart from the list published by SKR, a known name Fidelity Management is the new entrant in the list of Institutions holding a small portion of 2 lakh units

[myainvest]

I can’t understand the past few days volumes. If some understood and can explain it would be a help.
1. There was a huge volume of around a crore both exchanges combined for the past 3-4 days. All the while, throughout the day the sell volume depth was only around 5-6 lakhs. Even today, when 40-50 lakhs were traded in the morning, the sell volume depth was only some 6 lakhs.And still another 40 some lakhs were traded until it get locked in LC(sell volume depth was only 6 lakhs all the while) Was someone very cautious that they buy shares only at LC
2. My understanding of asm, although we are in stage 2, there can’t be any intraday trading. So all these shares will taken for delivery. Would that be a correct statement? But delivery percentage in bse/nse says different?

Though ppl are selling bonus shares, this trend is confusing for me. Any views from anyone ?

[chris]

@myainvest as per my understanding, ASM 2 does not define delivery, when a stock is in trade to trade you have a 100 percent delivery. Bcg is out of t2t a couple of days ago. So delivery volume is showing 50-60 percent on nse and bse.

[JackSparrow13]

Listened to the Concall. Promoter Share Holding Saga. Same old story. Do something impulsive & Smart. Then figure out how to make work legally. Similar to Bonus share issue. Very messy. Had to pay fine for this bonus delay.

For those who haven’t heard the concall, SKR very emotionally said he hadn’t sold a single share. and He was 200% committed to business. To a follow up question about share holding disclosures, he accepted there were lapses.
So, we are back to messy way of working. This mess will be cleaned in next few months. Then SKR Sir will have another outstanding idea, of increasing his and his shareholder’s misery..

CFO CS issue – Didn’t work out with initial CFO candidates. Widening the net. I can understand the CFO issue. A CFO for a MNC Ad Tech company can be hard to find pedigree. My personal sense is that such a person should either be internal to Brightcom, or deputy CFO of an AdTech competitor company.

Dont really understand the delay in CS issue. There are thousands of BSE/NSE companies with CS. Delay is seriously inexplicable.

Maybe the issue is something else. Often 1st generation promoters have issue in delegating responsibilities. How much can 1 single man do ?
But still SKR has started to strengthen his team from last year. Hopefully with time, he will learn to delegate non core activities downwards. The leader of Rs.5000 Cr. Sales company should ideally be free from day-to-day mundane activities. He should spend his time searching and perceiving the next big opportunities, and preparing his company to capitalize on the same.

But how can he do it, if has spend his time sending documents to BSE. Even the stupid announcement regarding publication of results in Newspapers, is being sent under his name. I truly hope, the publication was sent by his team under his name, not he himself…

Sorry, rambling post. Apologies if I have wasted your time.

[Abhishek]

Agree to Jacksparrow13, specially on 2 points that 1st generation promoters have issue in delegating responsibilities and second SKR must appoint a CS at earliest to reduce his work load from communication related work at least. CFO position is not that easy to fill so quickly.
My View – “Regarding SHP, not sure why is so much hue and cry. If company is growing then why can’t promotors take advantage and make money when share price is high. Again not sure if they sold or it’s transfer. Many promotors, CEO, board members etc. did in past and doing now. Ex. Jeff Bezos sold his 50% stake in Amazon, Bill gates sold his majority stake in Microsoft and now holding just 1% etc. Are Amazon and Microsoft stopped growing or become bad companies?
For me, the biggest achievement for BCG is to generate FCF in last quarter, which is expected to be 500 Cr by this quarter. It is very healthy sign for company as well as investors. Share price is influenced by many factors, but in long run it should be aligned to business growth.”

[chris]

Two sides of the coin, firstly the super year in terms of the business 5000+ crore revenue and near 100 percent increase in the PAT. Secondly, the SHP(ugly aspect), the issue here is not whether SKR sold his stock and made money, the problem here is “UNCERTAINITY” of not knowing what happened. Was hoping the concall would help get us some clarity.

[chris]

The silence in this group is killing me 😅 . But I guess this type of investment has these kinds of risks.

This ride with BCG, Being an investor (not a trader) has been a wonderful one, learnt a lot but not being able to cut out the noise anymore so staying off Twitter and the telegram group for now.

There’s nothing to discuss any further all the pros and cons have been laid out very clearly time and again. Fundamentals are strong, growth story is still on, sitting on good profits since I’ve been investing in bcg since 2014, so let the roller coaster ride continue (ending with a positive bias).

Again thanks a lot to everybody who have contributed to this forum.

[radhutheoptimist]

SKR should take moral responsibility of creating this mess and shattering lakhs of retail investors dreams. Other than early birds who entered at low price atleast two lakhs investors must have lost heavily. All because of his negligence… And may be greed. What a waste of intelligence… Sad.

[JackSparrow13]

“Rule Number One: Never Lose Money.
Rule Number Two: Never Forget Rule Number One”

https://www.investopedia.com/financial-edge/0210/rules-that-warren-buffett-lives-by.aspx#:~:text=%22Rule%20Number%20One%3A%20Never%20Lose,lost%20its%20revered%20AAA%20rating.

The only people I feel sad are for Index Investors. Especially, investors of a fund called Kotak Nifty Alpha 50 ETF. Nifty Alpha 50 Index, as calculated by NSE, gave Brightcom almost 10% portfolio weightage. Just imagine what will happen during next balancing in all indexes. All Index investors will lose for practically no fault of theirs.
https://www.moneycontrol.com/mutual-funds/nav/kotak-nifty-alpha-50-etf-regular-plan/MKM1409

For past few months, i was studying Index funds and its varieties (My favorite is Nifty Low Volatilty). Got a good lesson from this stock price movement. Wont go below Nifty 50, in Index investing. Happy being dumb.

[odysee]

I must admit it is not difficult to be critical about the handling of multiple issues by the management.
Such great optimism just a few months ago turning into such despondency today.
All the more puzzling as Mr Reddy had constantly stressed upon rewarding the retail shareholders ( including the old faithful and now tiring longtime lot). It is with great pride that we commented on the ever increasing BCG family, and every quarter many additional thousands had boarded our train for the really long journey from Kanyakumari to Kashmir.
We were chugging along merrily until the additional engine by way of a second bonus jolted us in January. That was done to enable yet more eager and anxious retailers to board our Superfast express on our thrilling journey.
However, the new engine did not deliver, and has in fact slowed down the earlier momentum, and is now in reverse gear.
It’s not that the company has not performed. It has, and brilliantly so. It’s not that the future prospects are cloudy-in fact they appear to be very promising. The growth has been fantastic and the profits and free cash flow are really heartwarming.
Then, why are we perceived to be so rapidly losing goodwill and trust and faith with the investing community?
The business performance was par excellence. But that has not been repeated on the administrative, communication and investor relations end.
What a pity that months and years of incredibly hard work of building back the image of Brightcom has been so rudely shaken only because of perceived deficient management depth in the financial, legal, secretarial and compliance department.
This situation can, of course, be swiftly salvaged if rapid action is initiated by Mr Reddy and his team without any further delay, and proper communication lines with investors are fast-tracked.
I am confident that a dedicated team, led by the inimitable Mr Reddy, that has overcome so many challenges and obstacles to emerge as a leading international ad tech player, can manage these other relatively mundane but important issues without much stress.
We have to be a little patient for a little more time, as indicated by Mr Reddy in the conference call. The ducks were all lined up. Maybe a couple stepped out of line. But I am certain that they will be back in formation in the not too distant future.

[kiranj]

The positivity is the need of the hour. We have seen similar downtrend after previous bonus. But we had a long rally after a positive event. Everyone know there are some positive events to unfold. I wish they are disclosed soon to fuel a longer rally. Cheers

[Logan]

As they say “if it ain’t broke, don’t fix it” – the bonus issue is a very good example of this. From the day the bonus was announced there was some pressure on the stock. If the price was maybe more than 500 or 1000 it would’ve made more sense but I think the CEO and the management team went with the previous winning formula but it backfired this time. They wanted to give bonus and also make the FPIs pay their money sooner. Hit two birds with one stone worked last time but this time not quite so well.

There were other reasons as well for this negative trend – like FA, delay in crediting bonus shares, Ukraine war, global tech sell-off and later SHP confusion. Even after FA when Mr.Sharma converted his warrants to shares, the stock rallied from 80-odd to 160-odd levels (pre-bonus) but the delay in crediting bonus caused the most negativity. It even brought media’s attention and even after that they took a little more time to credit the shares. Maybe if they had credited at the right time or with a delay of maybe 1 or 2 weeks, the stock wouldn’t have performed this badly.

Last time too after crediting bonus shares there was similar kind of a sell-off as the stock corrected/fell 25-30%. Last time people tried to sell 1 bonus share but this time it is 2 shares so the volume and pressure both are more. Add to that the increase in the number of shareholders too.

Coming to the fundamentals, the performance of the company is improving and they are acquiring 2 companies (3 if you include Lycos) to grow even more. Last time when outstanding issues happened the company’s hands were tied because there was pressure on the financials (high working capital requirements and cash flow issues) and they couldn’t announce any dividend or other things to bring any confidence but this time they have increased the dividend amount 6 times. Paying 60crs is not a joke. Some people want dividends similar to IT companies but the fact is BCG is not an IT company (it never was). It is in a growing industry which has both tailwinds (positives) and headwinds (negatives) and you have to make investments to grow and to survive. Even giants like Facebook are pivoting to a different business. They started focusing on hardware for their Metaverse plans. 2012-13 to 2019 were very horrible for many ad-tech companies and many went bust. Today’s winners like Criteo, Magnite, Perion etc struggled a lot in that period. Since the whole industry faces receivable issues, you have to be very careful about your finances and you have to do the right moves. I really liked their plans to acquire audio ad company (or it’s assets). Diversification in the same field/industry is a good move.

The management people have no choice but to improve corporate governance and investor relations. There was a massive improvement in the last 2 years but that also was not always 100%. From day one I have always been critical of this and I have asked the CEO about this in almost every conference call even though I look like an idiot asking the same question every time and not getting proper answers.

I have said this many times and I’ll say it again – If any investor has any complaints then they have to contact the company/management and if they don’t respond then they’ll have to go to the authorities. It’s your hard earned money.

[Raja]

Dear Friends, bcg is a long journey and the need of the hour is for skr to scale up from proprietor mentality to a professional manager..is he trying this or has the success already got into his head…only time will tell.

[allenasrini]

The approach he is taking is evident from the fact that there is no sense of urgency to hire CS even after 8 months.He has to hire right people for key positions and hold them accountable for delivery.I am not sure who SKR is holding accountable for bonus issue bungling. Not having a CFO at a time when FA is going on is also inexplicable. I have been a long term investor and holding a sizable quantity. Last call was really disappointing. I am still a believer in BCG but feel SKR has to get his team and allow them to work and hold them accountable for delivery.

[Raveendra]

I total agree that , last conference call was very disappointing. Even though there are many outstanding ongoing corporate governance issues, they did not bother to discuss on a single item atleast.

There was no explanation at all on bonus shares listing delay.

CFO exit during FA is not normal , even though they mentioned as retirement, it cannot be decided over night . Either they should inform 6 months to 1 year in advance .. or they should extend his tenure for a year or two considering the FA and CFO experience in the company.
It was mentioned very lightly in the conference call.

And about SHP, everyone knows there is some manipulation going on. They did not want clarify despite someone asked question.

And about FA, it was also mentioned very casually and in very brief.

And lastly the Q&A was not convincing. Only 4 to 5 people got chance and they did not ask relevant questions.

And other points :

Huge dilution of shares is a big negative at this point in time.

There was no mention of time lines of dividend credit.

As someone pointed out, I am little worried about index funds which accumulated at little higher price and despite bonus they will be in deep red.
Have to wait and watch for next turn of balance of stocks in these index funds.

Drawdown in the stock should not be leaps & bounds and management should do the necessary to arrest it.

I continue to hold the stock from the past 5 years.. hope it will still be a longterm play.

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