Shares of Brightcom Group Ltd on Wednesday rose for the third straight session to settle at their upper price band of Rs 17.71 over its previous close of Rs 16.10. The stock has rebounded sharply, rising 47.83 per cent from its 52-week low of Rs 11.98, a level seen on March 31, 2023.
The company’s board has approved the lock-in extension of equity shares issued to the shareholders of Vuchi Media Group (MediaMint) for up to 6 months pursuant to the termination of share purchase agreement. It also approved the appointment of Rajesh Vankadara as company secretary and compliance officer, an exchange filing stated.
Once considered a multibagger, the company’s scrip has plunged 82.86 per cent in a year and 39.25 per cent on a year-to-date (YTD) basis. That said, in the past five years, the counter, which is backed by seasoned investor Shankar Sharma, has surged 581.15 per cent. As of December 2022, Sharma owns a 1.24 per cent stake in the company.
Support on the counter could be seen at Rs 16, followed by Rs 14 and Rs 12 levels, analysts said.
Ganesh Dongre, Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, “On the weekly and monthly charts, the stock has continuously seen selling pressure. Technically, it has long-term average support at Rs 12-14. So, traders should wait and watch for now.”
AR Ramachandran from Tips2trades said, “Brightcom looks bullish on the daily charts and a close above resistance of Rs 19.50 could lead to targets of Rs 22-26.50 in the near term. Support will be at Rs 16.”
The stock traded higher than the 5-day moving averages but lower than the 20-day, 50-, 100- and 200-day moving averages. The counter’s 14-day relative strength index (RSI) came at 43.60. 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 621.62. It has a price-to-book (P/B) value of 2.08.
Brightcom has a one-year beta of 0.86, indicating low volatility, as per Trendlyne.
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 rose sharply today, extending their winning run for the fourth straight session in this holiday-shortened week. The 30-share benchmark BSE Sensex pack settled 583 points or 0.99 per cent higher at 59,689, while the broader NSE Nifty index moved 159 points or 0.91 per cent to close at 17,557.
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