Brightcom Group share price: Brightcom, which is backed by seasoned investor Shankar Sharma, has zoomed 1,635.42 per cent in the past five years. 
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Brightcom Group share price: Brightcom, which is backed by seasoned investor Shankar Sharma, has zoomed 1,635.42 per cent in the past five years. Shares of Brightcom Group Ltd snapped their 12-day winning run in Thursday's trade amid a volatile session. The stock today slipped 10.50 per cent from its upper price band (Rs 36.82) to hit the lower circuit level of Rs 33.32 against a previous close of Rs 35.07. At today's low price of Rs 33.32, Brightcom has rebounded 259.44 per cent from its one-year low of Rs 9.27, a level seen on April 28, 2023, when it turned into a penny stock. The counter reclaimed the multibagger tag in the last trading session of May this year.
In June, the stock has settled higher in 14 out of 16 sessions so far. Brightcom has gained 111.82 per cent in the past one month. Yet, it has declined 14.12 per cent in a year.
Brightcom, which is backed by seasoned investor Shankar Sharma, has zoomed 1,635.42 per cent in the past five years. As of March 2023, Sharma owns a 1.24 per cent stake in the company.
Earlier this month, market regulator SEBI imposed a fine of Rs 40 lakh on Brightcom Group and its promoters for flouting regulatory norms related to insider trading from April 2020 to August 2021.
The Securities and Exchange Board of India (Sebi) slapped a fine of Rs 12 lakh on Geetha Kancharla, Rs 6 lakh, each, on Vijay Kumar Kancharla HUF, Vijay Kumar Kancharla, Karta of HUF and M Suresh Kumar Reddy (Chairperson and MD) and Rs 5 lakh, each, on S V Rajyalaxmi Reddy and Brightcom Group.
In response, Brightcom said, "The adjudication order pertains to a distinct and separate matter. We want to clarify that this order is based on a different show-cause notice that Sebi initiated on November 23, 2022. The adjudication order, covering the period from April 1, 2020, to August 13, 2021, addresses specific aspects such as disclosure, code of conduct, execution of trades during the trading window closure period, and contra trade."
The company further stated that it is consulting legal advisors to carefully evaluate the order and determine the appropriate steps, which may include compliance with the directives provided.
For the unversed, Brightcom is under the scanner of market regulator Sebi over concerns of irregular and incorrect filing of shareholding pattern. The company, in this regard, has also issued a lengthy clarification previously.
Bourses BSE and NSE have put the securities of Brightcom Group under the long-term ASM (Additional Surveillance Measure) framework. The parameters for shortlisting securities under ASM include high-low variation, client concentration, close-to-close price variation, average daily volume in a month and price-to-earnings (P/E) ratio. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.
Technical analysts largely remained mixed on the counter.
AR Ramachandran from Tips2trades said, "Brightcom Group stock price is bullish but also very overbought and has next resistance now at Rs 44.30 on the daily charts. Investors should book profits at current levels as a daily close below support of Rs 28.80 could lead to target of Rs 19 in the near term."
On the other hand, Ravi Singh, Vice-President and Head of Research at Share India, said, "The stock looks strong, trading above 50-DMA (Day Moving Average) but below 200-DMA with low volumes. It can hit a target of Rs 40."
The counter's 14-day relative strength index (RSI) came at 81.17. 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 758. It has a price-to-book (P/B) value of 4.50.
Brightcom Group has a one-year beta of 0.99, indicating average volatility.
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 traded higher in volatile early deals today, despite weak cues from the global markets. The domestic indices were up led by gains in metals, banks, financials and automobile stocks.
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