[akkithegrt]

So-called experts will vote to buy Zomato; Please keep in mind that the CG of Zomato is not that good, and the financials are out of focus. This expert will claim BCG is not a good firm. I simply want to say to this expert, go examine BCG’s financials, 75% audited, 5000 cr audited financials, and this expert will say it will go to Rs 2.
Yes, BCG has CG issues that can be solved, but what about financials and valuation?

expert opinions:
Buy Zomato? The future is promising.

Don’t buy BCG? They don’t have any reasons to justify it apart from CG.

Guys, if you want to make money in the market, stop listening to these so-called market gurus!!

[Logan]

@akkithegrt, I’ve noticed this bias from the day I started investing in BCG. For them, for every other company in the world we should consider consolidated financials but only for BCG we should consider standalone it seems. And they’ll say BCG is expensive looking at standalone financials.

For other companies, out of 10 parameters it may be bad for 9 but they’ll only highlight that one positive aspect and say that company is the best in the world. If Ebitda is bad they’ll say adjusted Ebitda is good and say we should consider that. But for BCG, out of 10 if 2 or 3 are bad, they’ll just highlight that and cleverly leave out the rest.

And don’t get me started on the comparisons with Affle (though not direct comparisons). I also like Affle but man the way they hype the company is so silly.

I read an article last week which said that BCG at 2PE should be carefully looked because business related things may change because of slowdown/recession etc in the future.

“However, they should consider factors such as intense competition, market saturation, technological disruptions, and economic downturns that may impact Brightcom Group’s future performance, he cautioned.

Any operational, financial, or reputational risks associated with the company should be carefully evaluated, he said.”

But for them, Affle is a blind buy at 100 or even 1000PE also. And there won’t be intense competition, technological disruptions, market saturation, and economic downturns for Affle but it’s only for BCG.

I’m not saying to buy or not to buy BCG or any other company but we should look at facts carefully and then take decisions. If you have any problem then it’s always good to approach SEBI instead of relying on people who are way too biased and who won’t give unbiased views.

[vkhare789]

@Logan
I think main reason why most analysts are anti-BCG because retail investment in BCG is high and they don’t want retail investors to get rich. Most of these analysts are paid analysts who are paid by existing shareholders(FII/DII/HNI etc.) of companies to publish positive reviews so that there wealth can be protected or increased.
Unfortunately in case of BCG, we don’t have much of FII/DII participation so even though BCG has good valuation and financials, they wont support BCG unless they get good investment from these big investors. We have to stand firm on our analysis and remain invested. Hope that the present time is 4AM for BCG.

[Logan]

@vkhare789, except shareholders, almost everyone hates BCG. I don’t understand why they hate the company so much (since many years and also even before FA). As mentioned in my previous post, when talking about financials, some people deliberately leave out BCG’s consolidated financials and discuss only the standalone numbers. Even if they discuss consolidated, they highlight only the receivables. When comparing with other companies, they’ll do it only with typical IT services companies which are no way in the same business. They won’t even mention about companies like TTD, Magnite, PubMatic, Perion Network, Criteo etc.

The solution to this is the management/CEO should improve transparency and take initiatives to talk with analysts and institutions and give clear picture about the company’s business.

There was so much ambiguity about the subsidiaries of the company and to clear it all that was needed was sharing the subsidiaries financials but they did it only when SEBI ordered.

I’ve been requesting them to explain about items like other assets, other liabilities, other receivables, etc etc in the balance sheet but everytime they ignore that request. I’m tired and disappointed with their careless and ignorant attitude. It’s this type of private company mentality that is hurting the shareholders. Also, we should plead/beg to get any information which they were supposed to share in the first place (like correct SHP).

All shareholders should really thank sebi for their actions and because of that we got info on SHP and we can see subsidiaries’ financials etc.

[Logan]

I’ll start preparing queries for the conference call and share them here at the earliest. We shouldn’t let what happened last time when we couldn’t prepare and send the queries before the call. That happened because they informed about the conference call late morning and held it in the noon.

I request everyone to do the same so that we can send maximum number of queries. Also, shareholders who get the opportunity in the conference call, please ask them tough questions and make sure that they answer all your queries.

Everyone is tired of the same old replies to our queries. Hope this time it’ll be different.

[akkithegrt]

@Logan, what do you think will be the business outlook for FY 2023-24 For BCG, considering that there will be an election in the US?

[Brightspot]

Im seeing same copy paste from old announcements in the result PR, that means they are still looking for acquiring any company?
Inorganic Growth: M&A and Strategic Alliances Strategy
 On the inorganic growth front, we have been working out the most effective structure to
enable faster & ROE focused growth for our company.
 We are extremely focused on being highly capital efficient and are calibrating our
inorganic growth strategy to get most bang for our buck.
 Appropriate announcements shall be made when inorganic transactions are considered
or consummated.

[NIRAJ1]

I added few shares today again.
BCG will show 20%+ growth in coming year. Any thing above will be bonus.
But with all correction of problem, BCG will again reach new high in 1-2 year.
Last time I bought price of Rs 6 and hold it for 7 years and sold at 134/-
This time avarage is 15.5

[jagasworld]

TDS is deducted only after certain amount I think 5000. How do you know it was deducted. Did you receive any form for deduction?

[Vroom]

Yes the TDS is not reflecting in 26AS. Dividend payout was in the month of Oct 22 so should have been deposited by BCG in TDS return of 3rd Quarter ended on 31.12.2022.

Had it been done it would have reflected by now as last date of filing TDS return was 31st January and it takes roughly 8-10 days to get reflected in 26AS after TDS return filing

[Vroom]

No. My dividend payout was less than 5000 TDS was not deducted last year.

I don’t understand how such a big company which has revenue in thousand of crores make statutory filings a joke.

If they don’t deposit TDS on time some investor is bound to complain to SEBI atleast if not the Income Tax department and they will once again get negative publicity. Also not depositing TDS is a serious offence as it tantamount to defalcation of government dues.

[sagraa]

I also the dividend and TDS is not reflecting in form 26AS.
I wrote to IR but didn’t get any response.
I wonder if I have to pay this tax again.

[radhutheoptimist]

Regarding ESOP purchae….

Initially I was also thinking why BCG didn’t buy anything towards ESOP trust. But now I feel there is no reason for BCG to buy for ESOP. It was just a biscuit thrown those days during bull run.

My logic is…. What is the contribution of revenue by Indian unit? What kind of employees they may be having? May be around 300 in India. Most of the employees may be making 6L C2C. What kind of ESOP can you provide to them? Some 500 shares… So how much can you purchase from the market? Somewhere around 200k shares…. What kind of impact can it create if BCG actually purchase it towards ESOP? IMO nil. So it is better to keep the investors assuming that BCG will buy some huge quantity towards ESOP rather than actually executing it. So I feel it is no big deal.

When will ESOP can have real meaning? When BCG goes for Nasdaq listing and provides ESOP to key employees of subsidiaries…. Then it makes big difference.

I think that may happen soon as it may be difficult to keep key employees without share options in AD tech industries.

This is just my guess work… I may be totally wrong.

[Logan]

The recent article by moneycontrol is biased and poorly researched. They still haven’t checked properly and saying that BCG’s subsidiaries’ financials are still masked. After SEBI order BCG has shared audited reports of its major subsidiaries and those reports aren’t masked now.

Parent BCG maybe an export oriented company but its subsidiaries are not. They’re making money in their own country and BCG’s subsidiaries are not exporting services from India.

Standalone is less and consolidated is more because the standalone is more like an holding company.

About profits shrinking in 2019 and 2020, BCG did impairment and everyone knows about it. Why it was reported in balance sheet (other comprehensive income) and not in profit and loss, let the company answer to SEBI.

When it comes to “other” items on balance sheet, I have also criticised the company on this. It’s good that it’s highlighted and the management looks at it and provide proper details. Looking at the subsidiaries financials may give some idea though.

About company not paying off loans, everyone knows about it and understands it. Pointing it out after 2 years looks clearly biased in my opinion.

About tax, TDS etc, we should ask about the same in the conference call.

Same Moneycontrol had shared another article last month which was very informative and unbiased. I really liked that article as the author clearly mentioned the difficult situations that companies face while accessing technological changes.

The author any bias mentioned this in that article.

While SEBI has attempted to portray the issue in black and white and draw clear lines, the question is whether these issues are as clear and precise as SEBI has made them to be? Moreover, has SEBI used the benefit of hindsight and used the advantage of developments occurring later to judge on decisions taken by management earlier when the matters were uncertain?

SEBI alleged that not only BGL should have informed the exchanges of this material development much earlier, but should have also accounted for the impairment losses too much earlier.

These issues are noteworthy because SEBI has, perhaps for the first time at this scale, treaded the waters of the relatively new accounting rules – the IndAS. The IndAS are not merely recent. There are several areas where business judgment and even discretion is involved. For example, when can asset be said to have reduced in value, requiring write off or impairment?

Timing Matters, Subjectivity Too

Though there are certain guidelines to determine whether impairment has taken place or not, the matter still also requires peeking into the future with the eyes of a businessperson. This not only brings business judgment in the picture, but a level of uncertainty and even subjectivity. The same facts could be viewed differently by a different set of persons. Worse, if the same matter is viewed much later when many uncertainties are resolved, the answer may change.

However, the question is whether a person, having a different business judgment or having a different view on the uncertainty or having the benefit of knowledge of these later developments and thus hindsight wisdom, pronounce whether the earlier decision was bonafide, wrong or even fraudulent? Thus, the present case is a good example where not only these new accounting principles have been examined, but even interpreted by SEBI. It thus initiates the debate on this and the beginning of an enriching discussion on IndAS and even the law on this aspect.

The fact that these accounting principles were in the context of a cutting edge infotech company, where even the management is dealing with very fast changes, makes it more interesting. In this case, BGL has effectively said that, at that particular point, it was confident that the new privacy laws could be duly dealt with in their products/services through modifications, where required.

Here again, then, the question is if this judgment is proved wrong later, can it be said to be not bonafide or even fraudulent? This again is a subject where there will be more and enriching debates.

See the differences between today’s article and the old one. And look at the timing too. Even in other article yesterday by other website, they had mentioned only the standalone results and said that ebitda increased some 20 times etc but clearly missed reporting the consolidated financials. I don’t know what they get from being this biased. No one should hate any company this much. I know there are many flaws in the company and the management should fix that. Also, these people who write these articles should at least reach out to the management before commenting.

Also, the management should take responsibility for the current situation of the company. They don’t care about all these and at the end the people who suffer are shareholders. They have to wake up at least now and fix all the issues.

[akkithegrt]

Look at the timing of this article!! I have never seen so much hatred for a company. This article must have been written when the subsidiary’s finances were masked, and they just printed it now without even bothering to visit BCG’s website. This shows either this is a paid article or corporate rivalry, as nobody will write an article without checking the latest updates from the company side.
The writer who wrote this article was jailed for writing against Indiabulls, as the writer had written the article without checking the facts.
He has done the same with BCG; he even didn’t check the recent updates on the company website, where the company has shared audited financials of subsidiaries.

Anyway, this will boost BCG in one way or another, or in a half-baked article.
This shows someone clearly against BCG!

[whyShares]

Recent article on BCG

https://simplywall.st/stocks/in/media/nse-bcg/brightcom-group-shares/news/brightcom-groups-nsebcg-five-year-earnings-growth-trails-the

[owl71]

Just registered in this group. Very informative and thoughtful discussions. All the best for our success.

[owl71]

Interesting developments… Company immediately responding to that moneycontrol article is positive sign, indicates they are concerned about their image. Only thing that worries is: why they needed such article for this response ? Can’t they proactively share these facts ?

Anyway, assuming what they have said is correct… looks like the stock will stage good recovery now because it’s too much undervalued at CMP. Let’s hope for the best.

[owl71]

I just want to add one last thing… quantum computing is a game changer. Very useful for AI to get faster results. BCG will explode in value late 2024/early 2025. People are talking about Rs. 100-200 predictions but this has potential to go much beyond, time will tell.

[NIRAJ1]

added 20k shares today.
NOW I have 1lac+ shares..

[Author]

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