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Last Updated on: 23 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 532368 | NSE: BCG

Brightcom Group Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 10:22 pm

Market Cap 1,558 Cr.
Current Price 7.72
High / Low23.0/6.65
Stock P/E2.27
Book Value 38.6
Dividend Yield0.00 %
ROCE12.9 %
ROE9.30 %
Face Value 2.00
PEG Ratio-6.25

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Brightcom Group Ltd

Competitors of Brightcom Group Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
I Power Solutions India Ltd 6.41 Cr. 14.414.4/9.33 8.990.00 %3.67 %3.83 % 10.0
Hypersoft Technologies Ltd 7.47 Cr. 17.617.6/7.00 5.130.00 %8.57 %10.7 % 10.0
Newgen Software Technologies Ltd 15,162 Cr. 1,0821,548/61855.2 86.20.37 %26.6 %22.7 % 10.0
Mphasis Ltd 54,556 Cr. 2,8843,188/2,18034.2 4581.91 %24.0 %18.4 % 10.0
Kellton Tech Solutions Ltd 1,380 Cr. 142184/83.619.3 50.10.00 %15.9 %15.7 % 5.00
Industry Average123,699.00 Cr744.1924.84127.110.67%18.89%15.80%6.56

All Competitor Stocks of Brightcom Group Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales8796996541,1042,0211,2401,4811,6832,8651,3681,6901,814453
Expenses6284734497541,4528571,0251,1732,0499771,1721,263413
Operating Profit25022620534956938445651081639151855140
OPM %28%32%31%32%28%31%31%30%28%29%31%30%9%
Other Income119-10-0-1-3-3-110-10
Interest2-500000000000
Depreciation61595860636666626869726771
Profit before tax188191146290506317387445746323446483-30
Tax %26%27%28%27%27%30%28%28%27%29%28%27%-20%
Net Profit139140106212371223277321544229321352-24
EPS in Rs1.311.321.001.222.141.111.371.592.701.141.591.75-0.12

Last Updated: November 19, 2024, 12:36 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: November 19, 2024, 12:36 pm

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,2631,6001,6631,9512,2502,4512,4212,5802,6922,8565,0207,3975,326
Expenses1,0251,4931,2961,3791,5761,7221,7071,8211,9041,9903,5135,2243,825
Operating Profit2381073675726747297147597898651,5072,1731,501
OPM %19%7%22%29%30%30%29%29%29%30%30%29%28%
Other Income341421401-0-31421-2-6-0
Interest283527231615151360000
Depreciation172669416496108135180226246266279
Profit before tax228602735225946195906096176601,2581,9001,222
Tax %16%15%19%34%33%31%31%27%29%27%27%28%
Net Profit192512213424004294074444404839121,371879
EPS in Rs0.512.233.454.034.334.104.474.444.574.526.794.36
Dividend Payout %5%0%0%0%2%0%0%0%1%1%7%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-73.44%333.33%54.75%16.96%7.25%-5.13%9.09%-0.90%9.77%88.82%50.33%
Change in YoY Net Profit Growth (%)0.00%406.77%-278.58%-37.79%-9.71%-12.38%14.22%-9.99%10.67%79.05%-38.49%

Brightcom Group Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:11%
5 Years:13%
3 Years:18%
TTM:-37%
Compounded Profit Growth
10 Years:12%
5 Years:9%
3 Years:12%
TTM:-50%
Stock Price CAGR
10 Years:-11%
5 Years:30%
3 Years:-53%
1 Year:-54%
Return on Equity
10 Years:17%
5 Years:16%
3 Years:17%
Last Year:9%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 1:33 am

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital959595959595959595102404404404
Reserves8009431,0641,4351,9372,3132,7302,9092,7313,1584,8916,5977,343
Borrowings2061881589481797767360000
Other Liabilities599379486461328362358391405428645892954
Total Liabilities1,7001,6051,8032,0852,4412,8493,2603,4613,2673,6885,9397,8938,700
Fixed Assets3072842742584835675425246957198508561,036
CWIP42424227017271301285268322179255320
Investments8896109107106225251356536567571
Other Assets1,3431,2721,4791,5511,6782,1042,3102,4272,0532,2914,3746,2156,775
Total Assets1,7001,6051,8032,0852,4412,8493,2603,4613,2673,6885,9397,8938,700

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-10521127624215131551089460287703
Cash from Investing Activity +-3-60-271-293-80-313-387-272-431-217-266
Cash from Financing Activity +31-202954-517-109199-22548230
Net Cash Flow-76-5113321913168618667

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow32.00-81.00209.00478.00593.00650.00637.00692.00753.00865.001.002.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days209146173158117116132126132143137148
Inventory Days000
Days Payable
Cash Conversion Cycle209146173158117116132126132143137148
Working Capital Days157166166159176218251245188205207186
ROCE %40%8%24%37%33%28%22%21%21%22%29%31%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters4.12%3.51%18.48%18.47%18.47%18.48%18.43%18.38%18.38%18.38%18.38%18.38%
FIIs1.87%12.15%13.55%14.00%14.55%15.79%8.90%9.53%10.53%10.70%9.39%9.01%
DIIs0.00%0.00%0.07%0.05%0.06%0.08%0.08%0.11%0.17%0.15%0.00%0.00%
Government0.00%0.00%0.00%0.00%0.00%0.01%0.00%0.00%0.00%0.00%0.00%0.00%
Public94.01%84.34%67.91%67.45%66.91%65.66%72.57%71.97%70.92%70.76%72.24%72.62%
No. of Shareholders2,11,9732,67,9183,14,8513,68,0704,08,2444,41,5114,83,3675,36,4925,75,4056,62,4416,64,1426,46,230

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Nippon India Nifty Smallcap 250 Index Fund1,051,7280.211.791,051,7282024-11-210%
Motilal Oswal Nifty Smallcap 250 Index Fund642,6570.211.091,051,7282024-11-21-38.9%
SBI Nifty Smallcap 250 Index Fund502,0740.210.851,051,7282024-11-21-52.26%
Motilal Oswal Nifty 500 Index Fund70,1400.020.121,051,7282024-11-21-93.33%
Edelweiss Nifty Smallcap 250 Index Fund26,0680.210.041,051,7282024-11-21-97.52%
Groww Nifty Total Market Index Fund4,5040.020.011,051,7282024-11-21-99.57%
Motilal Oswal Nifty 500 ETF3,0040.020.011,051,7282024-11-21-99.71%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)6.794.529.519.249.32
Diluted EPS (Rs.)6.794.529.519.249.32
Cash EPS (Rs.)8.115.7413.9713.0112.16
Book Value[Excl.RevalReserv]/Share (Rs.)34.6826.2464.2159.3563.07
Book Value[Incl.RevalReserv]/Share (Rs.)34.6826.2464.2159.3563.07
Revenue From Operations / Share (Rs.)36.6424.8856.2656.5354.18
PBDIT / Share (Rs.)10.737.4617.4616.8615.89
PBIT / Share (Rs.)9.426.2413.0013.0913.05
PBT / Share (Rs.)9.416.2313.0012.9612.78
Net Profit / Share (Rs.)6.794.529.519.249.32
NP After MI And SOA / Share (Rs.)6.794.529.519.249.32
PBDIT Margin (%)29.2829.9731.0329.8229.33
PBIT Margin (%)25.6925.0723.1123.1524.09
PBT Margin (%)25.6825.0623.1122.9223.58
Net Profit Margin (%)18.5318.1716.9116.3417.20
NP After MI And SOA Margin (%)18.5318.1716.9116.3417.20
Return on Networth / Equity (%)19.5817.2214.8115.5714.78
Return on Capital Employeed (%)27.0923.7020.1721.9520.61
Return On Assets (%)17.3615.3513.0813.4512.81
Total Debt / Equity (X)0.000.000.000.010.02
Asset Turnover Ratio (%)1.070.130.170.210.22
Current Ratio (X)6.876.695.124.424.94
Quick Ratio (X)6.876.695.124.424.94
Dividend Payout Ratio (NP) (%)0.000.570.520.000.00
Dividend Payout Ratio (CP) (%)0.000.440.350.000.00
Earning Retention Ratio (%)0.0099.4399.480.000.00
Cash Earning Retention Ratio (%)0.0099.5699.650.000.00
Interest Coverage Ratio (X)5285.704787.328354.44127.5057.44
Interest Coverage Ratio (Post Tax) (X)3346.522903.324554.4370.8834.69
Enterprise Value (Cr.)1543.3918909.57292.8064.66113.93
EV / Net Operating Revenue (X)0.203.770.100.020.04
EV / EBITDA (X)0.7112.570.330.080.15
MarketCap / Net Operating Revenue (X)0.393.920.140.050.05
Retention Ratios (%)0.0099.4299.470.000.00
Price / BV (X)0.423.710.120.050.04
Price / Net Operating Revenue (X)0.393.920.140.050.05
EarningsYield0.460.041.152.982.97

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Brightcom Group Ltd as of November 23, 2024 is: 8.31

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 23, 2024, Brightcom Group Ltd is Undervalued by 7.64% compared to the current share price 7.72

Intrinsic Value of Brightcom Group Ltd as of November 23, 2024 is: 8.28

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 23, 2024, Brightcom Group Ltd is Undervalued by 7.25% compared to the current share price 7.72

Last 5 Year EPS CAGR: -0.36%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 26.33%, which is a positive sign.
  2. The company has higher reserves (2,988.54 cr) compared to borrowings (75.85 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (2.54 cr) and profit (367.31 cr) over the years.
  1. The stock has a high average Working Capital Days of 193.67, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 144.75, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Brightcom Group Ltd:
    1. Net Profit Margin: 18.53%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 27.09% (Industry Average ROCE: 18.89%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 19.58% (Industry Average ROE: 15.8%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 3346.52
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 6.87
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 2.27 (Industry average Stock P/E: 24.84)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Brightcom Group Ltd. is a Public Limited Listed company incorporated on 28/01/1999 and has its registered office in the State of Andhra Pradesh, India. Company’s Corporate Identification Number(CIN) is L64203TG1999PLC030996 and registration number is 030996. Currently Company is involved in the business activities of Information service activities. Company’s Total Operating Revenue is Rs. 366.81 Cr. and Equity Capital is Rs. 403.58 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
IT Consulting & SoftwareFloor 5, Fairfield by Marriott, Road No 2, Nanakramguda, Hyderabad Telangana 500032ir@brightcomgroup.com
http://www.brightcomgroup.com
Management
NamePosition Held
Mr. M Suresh Kumar ReddyChairman & Managing Director
Mr. Vijay KancharlaExecutive Director
Dr. Surabhi SinhaInd.& Non Exe.Director
Dr. K Jayalakshmi KumariInd.& Non Exe.Director
Mr. Peshwa AcharyaInd.& Non Exe.Director
Mr. Nilendu Narayan ChakrabortyInd.& Non Exe.Director

FAQ

What is the latest intrinsic value of Brightcom Group Ltd?

The latest intrinsic value of Brightcom Group Ltd as on 23 November 2024 is ₹8.31, which is 7.64% higher than the current market price of ₹7.72.

What is the Market Cap of Brightcom Group Ltd?

The Market Cap of Brightcom Group Ltd is 1,558 Cr..

What is the current Stock Price of Brightcom Group Ltd as on 23 November 2024?

The current stock price of Brightcom Group Ltd as on 23 November 2024 is 7.72.

What is the High / Low of Brightcom Group Ltd stocks in FY 2024?

In FY 2024, the High / Low of Brightcom Group Ltd stocks is 23.0/6.65.

What is the Stock P/E of Brightcom Group Ltd?

The Stock P/E of Brightcom Group Ltd is 2.27.

What is the Book Value of Brightcom Group Ltd?

The Book Value of Brightcom Group Ltd is 38.6.

What is the Dividend Yield of Brightcom Group Ltd?

The Dividend Yield of Brightcom Group Ltd is 0.00 %.

What is the ROCE of Brightcom Group Ltd?

The ROCE of Brightcom Group Ltd is 12.9 %.

What is the ROE of Brightcom Group Ltd?

The ROE of Brightcom Group Ltd is 9.30 %.

What is the Face Value of Brightcom Group Ltd?

The Face Value of Brightcom Group Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Brightcom Group Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE