Brightcom Group shares continue to shrink, crack below Rs 10 today; time to exit this penny stock?
Brightcom Group share price: The counter has eroded 87.22 per cent of its value in the past one year. It has cracked 66.55 per cent so far in 2023. This penny stock was once considered a multibagger. Despite the above-mentioned plunge, the stock, which is backed by seasoned investor Shankar Sharma, has surged 339.19 per cent in the last five years.
- Apr 27, 2023,
- Updated Apr 27, 2023 4:48 PM IST
Shares of Brightcom Group on Thursday continued to dwindle for the 13th consecutive session. The stock plunged 5 per cent today to hit its one-year low level of Rs 9.75. The counter has eroded 87.22 per cent of its value in the past one year. It has cracked 66.55 per cent so far in 2023. This penny stock was once considered a multibagger. Despite the above-mentioned plunge, the stock, which is backed by seasoned investor Shankar Sharma, has surged 339.19 per cent in the last five years. As of March 2023, Sharma owns a 1.24 per cent stake in the company.
Around 1.95 crore shares changed hands today, which was more than twice compared to the two-week average volume of 89.33 lakh shares. Turnover on the counter stood at Rs 18.99 crore, commanding a market capitalisation (m-cap) of Rs 1,967.47 crore.
The company, in an exchange filing, said it would hold a Board of Directors meeting on April 28 to consider and appoint an independent director of the company as a director on the board of directors of each of the material subsidiaries.
Earlier, market regulator SEBI issued a showcause notice to the ad-tech firm. It also flagged concerns and made observations about the irregular and incorrect filing of shareholding pattern of the company. SEBI said that the figures were not rightly reported which violated the norms.
The regulator made certain key observations, Brightcom said, which were on the impairment charges in its balance sheet for FY20 amounting to Rs 868.30 crore, shareholding pattern, compliance and reporting, among others. The company, in its response, said legal advice is sought with respect to the overall matter.
Brightcom said its promoters had pledged a part of their holdings to ICICI Bank, SBI, Canara Bank, Axis Bank and a few NBFCs back in 2013-2014, in order to collateralise the business debt.
"These financial institutions invoked the pledge and sold shares in the market, in 2014-2015 at prices between Rs 21.20 to Rs 6.40 (these are adjusted prices for all corporate actions including bonus, therefore, comparable to today's price). The total number of shares thus sold was around 5.40 crore shares on an adjusted basis," it stated.
Technical analysts largely suggested investors avoid fresh buying, while one of them advised exiting the counter.
Vaishali Parekh, Vice-President - Technical Research at Prabhudas Lilladher, said, "The stock has got some erratic pattern. From a technical point of view, one can avoid such stocks and go for some better quality counters."
Ravi Singh, Vice-President and Head of Research at Share India, said, "Brightcom share prices may remain under selling pressure to touch the levels of Rs 5-2 in the near term. Investors are advised to exit their holdings immediately as the outlook of the stock is very uncertain."
Support on the counter could be seen at Rs 7.25.
AR Ramachandran from Tips2trades said, "Brightcom Group's stock price now has support at Rs 7.25 on the daily charts. Till daily resistance of Rs 10.90 is not breached on a closing basis, investors should avoid buying this stock."
The group consolidates ad-tech, new media and IoT (Internet of Things) based businesses across the globe, primarily in the digital eco-system. Brightcom's consumer products division is focused on IoT. The company has a presence in the US, Israel, Latin America ME, Western Europe and Asia Pacific regions.
Meanwhile, Indian equity benchmarks settled higher today, extending their climb for the sixth consecutive session.
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Shares of Brightcom Group on Thursday continued to dwindle for the 13th consecutive session. The stock plunged 5 per cent today to hit its one-year low level of Rs 9.75. The counter has eroded 87.22 per cent of its value in the past one year. It has cracked 66.55 per cent so far in 2023. This penny stock was once considered a multibagger. Despite the above-mentioned plunge, the stock, which is backed by seasoned investor Shankar Sharma, has surged 339.19 per cent in the last five years. As of March 2023, Sharma owns a 1.24 per cent stake in the company.
Around 1.95 crore shares changed hands today, which was more than twice compared to the two-week average volume of 89.33 lakh shares. Turnover on the counter stood at Rs 18.99 crore, commanding a market capitalisation (m-cap) of Rs 1,967.47 crore.
The company, in an exchange filing, said it would hold a Board of Directors meeting on April 28 to consider and appoint an independent director of the company as a director on the board of directors of each of the material subsidiaries.
Earlier, market regulator SEBI issued a showcause notice to the ad-tech firm. It also flagged concerns and made observations about the irregular and incorrect filing of shareholding pattern of the company. SEBI said that the figures were not rightly reported which violated the norms.
The regulator made certain key observations, Brightcom said, which were on the impairment charges in its balance sheet for FY20 amounting to Rs 868.30 crore, shareholding pattern, compliance and reporting, among others. The company, in its response, said legal advice is sought with respect to the overall matter.
Brightcom said its promoters had pledged a part of their holdings to ICICI Bank, SBI, Canara Bank, Axis Bank and a few NBFCs back in 2013-2014, in order to collateralise the business debt.
"These financial institutions invoked the pledge and sold shares in the market, in 2014-2015 at prices between Rs 21.20 to Rs 6.40 (these are adjusted prices for all corporate actions including bonus, therefore, comparable to today's price). The total number of shares thus sold was around 5.40 crore shares on an adjusted basis," it stated.
Technical analysts largely suggested investors avoid fresh buying, while one of them advised exiting the counter.
Vaishali Parekh, Vice-President - Technical Research at Prabhudas Lilladher, said, "The stock has got some erratic pattern. From a technical point of view, one can avoid such stocks and go for some better quality counters."
Ravi Singh, Vice-President and Head of Research at Share India, said, "Brightcom share prices may remain under selling pressure to touch the levels of Rs 5-2 in the near term. Investors are advised to exit their holdings immediately as the outlook of the stock is very uncertain."
Support on the counter could be seen at Rs 7.25.
AR Ramachandran from Tips2trades said, "Brightcom Group's stock price now has support at Rs 7.25 on the daily charts. Till daily resistance of Rs 10.90 is not breached on a closing basis, investors should avoid buying this stock."
The group consolidates ad-tech, new media and IoT (Internet of Things) based businesses across the globe, primarily in the digital eco-system. Brightcom's consumer products division is focused on IoT. The company has a presence in the US, Israel, Latin America ME, Western Europe and Asia Pacific regions.
Meanwhile, Indian equity benchmarks settled higher today, extending their climb for the sixth consecutive session.
Also Read | Reliance Capital shares jump 3%; Hinduja Group entity emerges as sole bidder, offers Rs 9,650 crore
Also Watch: Raymond shares at new highs, jump 43% in a month! What's driving the rally, and should you buy?