Brightcom may be multibagger like Google in Internet Ads Business

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Sunil Lalwani
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Joined: Mon May 11, 2020 5:29 pm

Brightcom may be multibagger like Google in Internet Ads Business

Post by Sunil Lalwani »

A lot of people are talking about Brightcom Group being the new multibagger penny stock and so I also bought 5000 shares today.

The stock is a penny one costing Rs. 6. My investment is about Rs. 30000 which is quite a big investment for me.

However, the risk-reward appears to be favourable.

If such stocks succeed, we can expect 10x profit from it. If it fails, we lose 1x.

I did some research about the Brightcom group (earlier known as Lycos Internet) and does look like a promising multibagger stock.

According to the website, the Brightcom group consolidates ad-tech, new media and iot based Businesses across the globe, primarily in the digital eco-system.

It is also stated that Brightcom Media enables businesses, agencies, and online publishers Worldwide in meeting their digital marketing needs, serving 40 billion impressions every month.

The Brightcom group has a number of marquee clients include leading blue chip advertisers like Airtel, British Airways, Coca-Cola, Hyundai Motors, ICICI Bank, ITC, ING, Lenovo, LIC, Maruti Suzuki, MTV, P&G, Qatar Airways, Samsung, Viacom, Sony, Star India, Vodafone, Titan, and Unilever. Publishers include Facebook, LinkedIn, MSN, Yahoo! and Twitter.

Brightcom also has a number of well-known agencies like Havas Digital, JWT, Mediacom, Mindshare, Neo@Ogilvy, Ogilvy One, OMD, Satchi & Satchi, TBWA, and ZenithOptiMedia to give it advertisements.

The results of the company are also quite promising.

• The Q3 consolidated revenue was Rs. 859.52 Crores, up 1.14% Y-o-Y.

• Q3 consolidated EBITDA of Rs. 240.59 Crores and PAT of Rs. 143.84 Crores.

• Q3 consolidated earnings per share (EPS) of Rs. 3.02/- Revenue for Q3 FY2019-20 was Rs. 859.52 Crores, an increase of 1.14% Y-o-Y and an increase of 36,52% Q-o-Q.

• EBIDTA for Q3 FY2019-20 was Rs.240.59 Crores, a increase of 23.25% Q- o-Q and an increase of 4.89% Y-o-Y. PAT for Q3 FY2019-20 was Rs. 143.84 Crores, an increase of 4.00% Y-o-Y and an increase of 36.38% Q-O-Q.

• Revenue from Digital Marketing Segment for Q3 FY2019-20 was Rs.749.34 Crores, an increase of 45.09% Q-o-Q and an increase of 1.13% Y-o-Y. Revenue from Software development Segment for Q3 FY2019-20 was Rs.110.17 Crores

Corporate Update

✓ Corporate restructuring in the works to have 12 subsidiaries under a US entity to allow for better receivable financing alternatives at the consolidated level.

✓ Sent settlement agreement draft to Daum on the LYCOS acquisition dispute. Awaiting favorable response.

✓ Canara Bank loan NOC received and reflected in this quarter’s accounts. Business and Technology Update

Business highlights of the Brightcom Group

I am also summarizing the business highlights of the company:

1. Brightcom is part of Trustworthy Accountability Group, known as the TAG.

2. Dyomo has successfully started to provide Artificial Intelligence and. Machine Learning services and allocated a work force of about 100people. This is expected to grow in terms of work force proportion in the coming quarters.

3. Partnership with Commfident is working very well.

4.Brightcom had significant participation at Google partner conference in Ireland.

So, it appears that the Company is well poised in the internet advertisement space just like Google is.

If Brightcom can achieve even a part of what Google achieved, the penny stock will become a multibagger.

Views invited from other Boarders of this forum.

Discolsure: Invested and biased :)

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