This IT stock hit its upper circuit at 5% when the market opened on Tuesday as the invocation of the 11.3 lakhs pledged shares of the company takes place. Shares pledged by the promoter were sold by two of the pledgees two days back.
Share price of Brightcom Group previously closed at Rs. 14.50 and opened in the market today at its upper circuit of 5% at Rs. 15.20 per share. The stock is trading at a discount of 65.23%. In the last three years, the stock has returned a total of 316.67%
The promoter M Suresh Kumar Reddy, who is also the chairman and managing director in the company holds 0.76% stake in the company and had pledged 47.61%, 73 lakh equity shares to two different companies. On 10 September 2023, a total of 11.3 lakh pledges shares were invocated, in which 8.5 lakh shares were pledged to Comfort Fincap Limited and 2.8 lakh shares were pledged to Luharuka Media & Infra Limited.
After the invocation of pledge shares, Comfort Fincap Limited holds 46.5 lakhs and Luharuka Media & Infra Limited holds another 15.5 lakh shares.
The invocation of pledged shares simply means lenders selling their acquired pledged shares. The promoter of the company had previously pledged 55 lakh shares to Comfort Fincap Limited and 18.3 lakh shares to Luharuka Media & Infra Limited.
As per their latest financial statements, the company made a revenue of Rs. 1367.92 crore in Q4FY23 which increased 23.5% to Rs. 1690.32 crore in Q1FY24. Its net profit which was Rs. 229.15 crore in Q4FY23 increased by 40.2% to Rs. 321.48 crore in Q1FY24. The company maintains a low debt to equity ratio of 0. It also maintains a good average ROE for the last three years of 17.43. Its P/E ratio stands at 2.06 against its industry average P/E ratio of 31.72.
Brightcom Group Limited is engaged in providing software related services and categories their offerings in three categories which includes ad- tech, IT services and future technologies. The company was incorporated in the year of 1999 in Hyderabad, India. It is completely debt- free and owns more than ten subsidiaries.
Written by Bhumika Khandelwal
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