Brightcom Group shares down 19% in a month; here's what analysts say

Shares of Brightcom Group Ltd on Wednesday slipped 2.42 per cent to close at Rs 25.76 against a previous close of Rs 26.40. The counter, which has declined 19.30 per cent in the past one month, saw extreme highs and lows this year. At today's closing price of Rs 25.76, Brightcom has rebounded 177.88 per cent from its one-year low of Rs 9.27, a level seen on April 28 this year when it turned into a penny stock. That said, it has lost 47.48 per cent from its 52-week high price of Rs 49.05, hit on August 23, 2022.

The multibagger stock, backed by seasoned investor Shankar Sharma, has zoomed 1,115.09 per cent in the past five years. As of June 2023, Sharma owns a 1.14 per cent stake in the company, slightly lower from 1.24 per cent held in the previous quarter.

Bourses BSE and NSE have put the securities of Brightcom Group under the long-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.

Analysts largely remained mixed on the counter. Support level could be seen at Rs 23.30.

Milan Sharma, Founder and CEO at 35North Ventures, said, "Brightcom Group shares have shown high volatility over the last two years. On a consolidated basis, the performance has improved but it's too early to take a call. Operating margins of 28 per cent are stable but growth is a concern. One should avoid this counter as many other better stocks are in the market where one can look for a long-term investment."

AR Ramachandran from Tips2trades said, "The stock price is slightly bullish with next resistance now at Rs 26 on the daily charts. A daily close below support of Rs 23.30 could lead to target of Rs 20.50 in the near term."

VLA Ambala, Research Analyst at Stock Market Today, said, "We had last recommended Brightcom Group to buy in the Rs 16 to 20 range and since then, it has made a high of Rs 35.40, almost 80 per cent return in just two weeks. Now, those who are already holding the stock and expecting more gains should place a trailing stop loss at Rs 20 for further targets between Rs 28 and 50."

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 fell sharply today amid a sell-off seen across all sectors, tracking global indices. The 30-share BSE Sensex pack dived 677 points or 1.02 per cent to close at 65,783, while the broader NSE Nifty pack moved 207 points or 1.05 per cent to end the day at 19,527.