After Surging over 2600 percent in the last 1 year, the shares of Brightcom Group has lost 40 percent of investor wealth just in the last 1 month.
The smallcap stock rose from ₹4 on April 7, 2021, to ₹108.75 on April 7, 2022, skyrocketing as much as 2,618 percent just in 1 year. However, since April 7 this year, the stock has lost 40 percent to currently trade at around ₹65 currently. Despite the recent fall due to the overall market weakness, the stock has given 1,525 percent returns to its investors since April last year.
An investment of ₹1 lakh in April last year would have turned to ₹16.25 lakh currently. But an investment of ₹1 lakh in April this year (2022) would have been reduced to ₹60,000 currently.
The Brightcom Group is a digital marketing company founded in 2000 and headquartered in Hyderabad, India with offices across the world in US, Argentina, Brazil, Mexico, UK, France, Germany, Sweden, China, India, Australia, etc.
As per the company's website, it consolidates Ad-tech, New Media and IoT-based businesses across the globe, primarily in the digital eco-system. Its 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.
In the December quarter, the company's profit stood at ₹26 lakh, up considerably from ₹3 lakh in the year-ago period. Its revenue came in at ₹93 crore in Q3 2021 vs ₹83 crore in Q3 2020. The board of directors also approved a bonus issue in the ratio of 2:3 along with the results of the latest quarter.
However, analysts advise caution while investing in the stock. As per market experts, the company has a very weak presence among the DIIs and FIIs despite a very high market cap, which is worrisome. Further, the consistently reducing promoter holding over the years also does not instill a lot of confidence in the stock.
Hence, if you are an investor with a high-risk appetite, you can consider investing in the stock, however, for investors with a low-risk appetite, it would be safer to skip the stock despite the tremendous returns.
Disclaimer: This story is for educational purposes only. Please speak to an investment advisor before making any investment decisions.