Brightcom Group shares tank 4%; check revised board meeting date & technical levels

Shares of Brightcom Group Ltd declined in Monday's trade. The stock fell 4 per cent to hit a day low of Rs 20.14. At this price, the scrip has fallen 45.30 per cent from its one-year high of Rs 36.82, a level seen on June 22, 2023. Despite the said drop, the multibagger counter has gained 117.26 per cent from its 52-week low price of Rs 9.27, hit on April 28 last year when it turned into a penny stock.

On BSE, around 23.39 lakh shares were seen changing hands today. The figure was lower than the two-week average volume of 75.46 lakh shares. Turnover on the counter stood at Rs 4.79 crore, commanding a market capitalisation (m-cap) of Rs 4,132.70 crore. There were 10,46,200 sell orders against buy orders of 3,63,937 shares.

The company, in an exchange filing, said it has postponed a board meeting to approve its quarterly results to January 21, 2023. Earlier, the meeting was scheduled to be held today.

On technical setup, support on the counter could be seen at Rs 18 level.

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said support will be at Rs 18.

DRS Finvest founder Ravi Singh also mentioned Rs 18 as the support zone.

The counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-day and 200-day simple moving averages (SMAs) but lower than the 150-day SMA. The counter's 14-day relative strength index (RSI) came at 58.25. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 234.14 against a price-to-book (P/B) value of 2.69.

Brightcom is backed by seasoned investor Shankar Sharma. It has zoomed over 1,290 per cent in the past five years. As of September 2023, Sharma owns a 1.14 per cent stake in the company. He has been restricted by markets regulator Sebi from selling shares.

Last year, the counter saw heavy selling pressure after the company's chairman and managing director (CMD) Suresh Kumar Reddy, along with chief financial officer (CFO) SL Narayana Raju, resigned following a Sebi order. The Securities and Exchange Board of India (Sebi) had restrained Reddy and Raju from holding any directorial positions.

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.

(Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.)

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