Shares of Brightcom Group lock at upper circuit for consecutive sessions

Indian frontline indices ended the session lower, dragged down by losses in the fast-moving consumer goods (FMCG), energy, utilities and capital goods sectors. BSE Consumer Durables, on the other hand, surprised investors with gains of more than 1.5% in an otherwise weak market. 

Notable losses were recorded in the information technology sector, whereas shares of Brightcom Group Ltd were in the focus owing to upper circuit locking on consecutive sessions. On an intraday basis on Thursday, the shares of Brightcom Group Ltd experienced a surge in buying interest and were locked at a 5% upper circuit at Rs 26.51 per share on the BSE. 

Considering the company’s quarterly performance, on a consolidated basis, it reported healthy growth of 14.16% from Rs 1,480.61 crore registered in Q1FY23, recording total revenue of Rs 1,690.32 crore in Q1FY24. It has reported operating profit growth of 14.49%. Compared to the same quarter last year, the net profit for the first quarter of FY24 grew 15.96%, from Rs 277.24 crore to Rs 321.48 crore. 

Shares have tumbled around 35% in the last year as they began to hit back-to-back lower circuits and have continued to record 52-week lows frequently as a result of significant selling pressure caused by a legal concern. 

The Securities and Exchange Board of India (SEBI) demanded a forensic audit of the company’s financial statements for the financial years 2014-15 to 2019-20. According to the market regulator, it discovered inconsistencies in the company’s disclosures that could be harmful to the interests of investors and the securities markets.  

The company offers online or digital marketing services to direct marketers, brand advertisers and marketing agencies worldwide. Due to its well-known global footprint, Brightcom Group is able to assist partners in their attempts to capitalise on and prosper from the current global trends. The company’s leading blue-chip clients include Airtel, British Airways, Coca-Cola, Hyundai Motors, ICICI Bank, Titan and Maruti Suzuki. 

Keep a close eye on this scrip for the upcoming sessions!  

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.