Brightcom group is a completely fraudulent affair - from its ceo, management, even some of the major shareholders. Do a forensic analysis of everything from the website and office to the shareholders and overlapping companies and do reach your own conclusions. It’s shocking the stock still trades at 3800 cr market cap!
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I tried asking ChatGPT by giving last 3 years annual reports
Sure, I’ll provide a comprehensive thesis on Brightcom Group’s financial and operational review based on the provided data, including a summary of the tables for easy understanding. Here’s how we can structure our insights:
Introduction to Brightcom Group
Brightcom Group is a company involved in digital marketing, leveraging technology to optimize online advertising campaigns across various platforms. Despite showing strong financial numbers in terms of revenue growth and profitability, there have been concerns about its valuation and operational efficiencies.
Financial Performance Overview
Let’s break down the company’s financial performance over the last five years:
Profit After Tax (PAT) and Cash Flow from Operations (CFO)
| Year | PAT (₹ in millions) | CFO (₹ in millions) | CFO as % of PAT |
|---|---|---|---|
| 2022 | 912.2 | 287.0 | 31.5% |
| 2021 | 82.23 | -232.53 | -282.8% |
| 2020 | 44.01 | -79.24 | -180.1% |
| 2019 | Not Available | Not Available | Not Available |
| 2018 | Not Available | Not Available | Not Available |
The table shows fluctuations in both PAT and CFO, highlighting a period of operational challenges, particularly in 2020 and 2021 when CFO was significantly negative.
Cash Flow Details (₹ in millions)
| Year | CFO | CFI | CFF | Net Cash Flow |
|---|---|---|---|---|
| 2022 | 287 | -217 | 548 | 618 |
| 2021 | 460 | -431 | -22 | 8 |
| 2020 | 89 | -272 | 199 | 16 |
The table indicates how cash from operations (CFO), investing (CFI), and financing (CFF) activities contributed to the net cash flow, with a notable recovery in 2022.
Analysis of Fund Flow and Usage of Funds
Brightcom Group has managed its funds primarily through equity financing rather than debt, which is evident from the substantial equity raised in recent years. The company’s approach has been to use these funds to manage operational expenditures and investments in fixed assets.
Corporate Governance and Related Party Transactions
The company has had its share of challenges with statutory compliance, as highlighted by auditors’ concerns regarding irregularities in statutory dues like TDS and income tax. Additionally, there have been significant related party transactions, involving large unsecured loans to subsidiaries such as:
- DreamAd, Panama: ₹833.91 million
- Frontier Data Management Inc., USA: ₹985.97 million
- International Expressions Inc., USA: ₹797.31 million
These transactions, while legal and claimed to be on an arm’s length basis, demand transparency to ensure they are in the best interest of all shareholders.
Conclusion
Brightcom Group shows a mixed financial narrative with strong revenue growth and profitability but coupled with operational and compliance challenges. The reliance on equity financing to buffer negative cash flow from operations presents both stability and risk. Prospective investors and stakeholders should weigh these factors, along with the company’s strategic direction and market potential, when assessing its true valuation and growth prospects.
what do you think ?
Dear investors any update on BCG? I can see the NSE and BSE have announced that the trading may be suspended in the stock BCG from June 14th, 2024 after the company failed to disclose the financial results for two consecutive quarters that ended in September and December 2023.
Do ChatGPT tell you the Promotr’s intention and behaviour ?
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No chatgpt only give information about promoter overall scenario… Not indept or any particular intension
I am not sure if that was a rhetorical question or not😅.
ChatGPT sources information from Open Source data available in the world. This data also doesn’t get updated in real time. Also, it doesn’t know or sometimes mixes up very specific data, even though they are public. It’s a great tool for general purpose uses, definitely not used for complex analysis. The reason being ChatGPT is quite stupid. It will be more fast and intelligent sooner than we think, but that is not the case yet.
As of now, Basically, it doesnt know more than google. The only advantage of ChatGPT is that it understands English and answers in English, that too incorrectly, if it doesnt know or questiin is too complex.
Google Search Engine understands keywords. And have to go through links, manually read, do the analysis. Also, Google is real time(latest news, for example). ChatGPT is not!!
Also, people should stop Tracking BCG
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Detailed explanation… agree on your comments fully
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