Brightcom Group Ltd -Multibagger Stock Analysis 2023
In this article, we can see Brightcom Group Ltd as a Potential Multibagger Stock as on October 2023.
Brightcom Group Ltd
Brightcom Group Ltd (formerly Lycos Internet Ltd) offers digital marketing solutions to businesses, agencies, and online publishers worldwide. VIJAY KANCHARLA is the current Chief Innovation Officer. PESHWA ACHARYA is the current Non-Executive Director.
Acquisitions
On 6 Feb 2022, the Company signed a Letter of Intent (LOI) to acquire a US-based digital audio company via an asset purchase transaction to tap the rapidly growing audio advertising market.
Joint Venture:
On February 2nd, 2023, Brightcom Group Limited and Consumable, Inc. formed a 51/49 joint venture named Brightcom Audio US, LLC to offer Audio Advertising Solutions.
Revenue Breakup – FY22:
Sale of Services ~93%, Sale of Software ~7%. The company’s total exports of Services and Software mounted to almost ~99% of the total revenue
Customer Base:
The Company’s primary clients are end-to-end advertisers, agencies, and publishers, including ad exchanges & networks like Yahoo, Google, American Express, Unilever, Globalis, Sparcmedia, Petco, etc.
Website
Location
Brightcom Group Ltd is headquartered in Hyderabad. The company has 25 office locations and has 484 employees and consultants worldwide.
Leaders
VIJAY KANCHARLA is the current Chief Innovation Officer. Vijay leads the innovations at Brightcom Group. He is responsible for the company’s worldwide technology enhancements and innovations. Vijay has been at the forefront of the internet revolution and has vast experience in building innovative solutions for the online market. Prior to co-founding USAGreetings and Ybrant Technologies, he worked with some of the Fortune 500 companies, such as Hewlett Packard and Pacific Bell. Vijay holds an M. S. in Computer Science from the University of Louisville and a B. Tech. from the Jawaharlal Nehru Technological University, Hyderabad, India.
PESHWA ACHARYA is the current Non-Executive Director. An industry veteran, Acharya is the Chief Marketing Officer (Responsible for Marketing, Revenue and Admissions) at the Ampersand Group. He has a vast experience of around 29 years across FMCG, Retail, Telecom, E-Commerce, Hospitality and Education domains. Archarya, an alumnus of IIT Kharagpur and IIM Calcutta and has worked in various cities in India and across Asia and Africa. He has held various leadership roles for brands like P&G, Reckitt, Pepsi, Dabur, Reliance Retail, Globacom (Africa) and Sterling Holidays(A Fairfax company).
Dr. K. Jayalakshmi Kumari is the current Independent Director and has a Ph.D. in social sciences, an M.A in Economics, M.A in Political Science, M.Phil. and M.Ed., with years of experience in teaching. With proven ability to constantly challenge and improve existing processes and systems, she has been participating and rendering voluntary services to many social organizations. Presently, she is working with the Nalanda Educational Society as a faculty in the field of social sciences. In addition to this, she regularly conducts awareness programs for women’s development, entrepreneurship, health camps, and does community services towards encouragement of economically weaker women. Dr. Jayalakshmi is also an Independent director in the listed company M/s Cambridge Technology Enterprises Ltd., Hyderabad.
DR. SURABHI SINHA is the current Independent Director. With a PhD in Mathematics from the Indian Institute of Technology, Kharagpur, and several academic publications to her credit, Dr. Surabhi Sinha started off as a Research Assistant at the Council for Scientific & Industrial Research, India, way back in 1992. Dr. Surabhi has published several academic papers in the field of Fuzzy Programming, Multi-level Non-linear Systems, Linear Programming Approaches, and Integer Solutions via Goal Programming. Dr. Surabhi also holds an M.SC in Mathematics from IIT – Kharagpur, B.SC (Honors) in Mathematics from IIT-Kharagpur, and a Diploma in Information Technology from the National Institute of Information Technology, Delhi. To note, she received a gold Medal for excelling in the course work.
NILENDU NARAYAN CHAKRABORTY is the current Mr. Nilendu is a qualified Chartered Accountant currently working as a Group Financial Controller at Abu Hani Establishment LLC, Muscat, Oman. He has vast experience of over two decades in the financial sector. He is a results-driven and detail-oriented Group Financial Controller with 12+ years of leadership experience overseeing (1000+) employees in cross-functional departments in multi-industry private businesses. He has streamlined business efficiencies in large corporates by enhancing risk controls, financial reporting systems, information systems and budgetary controls.
Highlights
- REVENUE Rs. 5019 crore are increased by 75.8%
- PAT Rs. 912.2 crores are increased by 88.86%.
- EBITDA rose to 69.78%
- ROE stands at 17.23
- the company operates in a complex, diversified, and growing Digital Advertising Industry (DA) also known as Adtech. Industry experts predict that the DA market has a continuous growth for the next few years. A few key highlights on the DA market.
- Brightcom group’s renowned global presence, including in the US, Israel, Latin America, Middle East, Western Europe, and Asia Pacific regions, positions us at the forefront of the Adtech digital landscape, enabling us to support partners in their efforts to leverage and benefit from current global trends. Companies have the technological platform and human knowledge to do so.
- The latest generation of Internet, tech platforms, applications, and services is powered by innovative technology; the most common being the blockchain, advanced robotics, AI, ML, the Internet of Things, and 3-D printing. They are already influencing global trade, and their impact will grow in the years ahead.
- Within the next 5 years, 75% or more of the data processing and analytics will run at the edge of the next-generation tech. Brightcom with its technology expertise, global footprints and futuristic know-how is well positioned to meet the challenges of the next generation.
- The company has delivered a stellar operational & financial performance, Consolidated Revenues of Rs.5019 Crores (75.8% YOY growth), PAT of Rs. 912.2 Crores 88.86% growth), and EBITDA of Rs. 1504 Crores (69.78% growth).
- The company has about 250 Global Agency Relationships, 600 Direct Advertisers, 650 odd large publishers, and more than 48,000 long-tail publishers.
- The company has crossed serving 90 billion impressions per month during the year. To top it all, Brightcom continues to remain a debt-free company.
Products & Services
- Ad-Tech and Digital Marketing
- Software services
- Future technologies
Profit & Loss
Expansions
- On 18th November 2022, company launched a Brightcom Group Investor Relations Contact Centre to address queries of shareholders and investors by phone.
- In FY22, M/s. P C N & Associates (formerly known as Chandra Babu Naidu & Co) retired as Statutory Auditors of company and were replaced by M/s. P. Murali & Co.
Positives
- Company is almost debt free.
- Stock is trading at 0.45 times its book value
- Company is expected to give good quarter
- Company has delivered good profit growth of 27.5% CAGR over last 5 years
- Trading at 31.9% below our estimate of its fair value
- Earnings grew by 30.6% over the past year
Negatives
- Old name Lycos – have integrity issues
- Promoter holding is low: 18.4%
- Volatile share price over the past 3 months
- Unstable dividend track record
Warren Buffett Checklist
| Factor | Value |
| Economic Moat | Moderate |
| Growth | Moderate |
| Valuation | Good |
| Debt | Good |
| Integrity | Bad |
Summary
Based on above evaluation the company have multibagger properties.
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