Check Before You Invest : Brightcom Group Ltd

BSE: 532368 NSE: BCG ISIN: INE425B01027

| Sector: IT & ITES | Industry: IT - Software

Snapshot

Q.1 Which industry/sub-sector does Brightcom Group Ltd belong to?

Brightcom Group Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.

Q.2 Is Brightcom Group Ltd a good quality company?

Brightcom Group Ltd is a weak quality company, based on a inconsistent 10-year financial track record.

Q.3 Is Brightcom Group Ltd undervalued or overvalued?

Brightcom Group Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Brightcom Group Ltd a good buy now?

Brightcom Group Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Brightcom Group Ltd?

Brightcom Group Ltd revenue growth is -10.2% for FY-2025, which is below its 5-year CAGR of -2.14%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Brightcom Group Ltd?

Brightcom Group Ltd Return on capital employed is 0.03% for FY-2025, which is below its 5-year historical median of 0.34%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Brightcom Group Ltd?

Brightcom Group Ltd Return on Asset is 0%, which is below its 5-year historical median of 0.13%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Brightcom Group Ltd?

Brightcom Group Ltd Return on equity is 0% for FY-2025, which is below its 5-year historical median of 0.15%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Brightcom Group Ltd?

Brightcom Group Ltd Cash conversion cycle is -97 days, below its 5-year historical median of -11 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.23	0.26
ROE	-	0.15
ROCE	0.03	0.34
Cash Conversion Cycle	-97 days	-11 days

Q.6 Gross Profit margin of Brightcom Group Ltd?

Brightcom Group Ltd Gross profit margin which is the profit after deduction of direct costs, is 0.1% for FY-2025, which is below its 5-year median of 1.1%, indicating decreasing margins.

Q.7 Operating Profit Margin of Brightcom Group Ltd?

Brightcom Group Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 0.14% for FY-2025, which is in line with its 5-year median of 0.14% indicating stable margins.

Q.8 Net Profit Margin of Brightcom Group Ltd?

Brightcom Group Ltd Net Profit Margin is 0.01% for FY-2025, is below with its 5-year median of 0.47%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	0.1	1.1
Operating Profit Margin	0.14	0.14
Net Profit Margin	0.01	0.47

Q.9 Debt to Equity ratio of Brightcom Group Ltd?

Brightcom Group Ltd Debt-to-Equity ratio is 0.07, which is lower with the industry average of 0.11, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Brightcom Group Ltd?

Brightcom Group Ltd Debt to cash flow from operations is -32.87, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Brightcom Group Ltd?

Promoters hold 18.38% of the Brightcom Group Ltd, with 1.08% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Brightcom Group Ltd vs industry peers?

Brightcom Group Ltd revenue CAGR is -2.14%, compared to the industry median CAGR of 10.86%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-10.2	10.9
Gross Profit Growth	-	19
Operating Profit Growth	0	NAN
Net Profit Growth	-100	22

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.23	0.5
ROE	-	5.83
ROCE	0.03	6.79
Cash Conversion Cycle (days)	-97.12	47

Valuation & price assessment

Q.1 Stock return of Brightcom Group Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 0.9% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	0.9%	21.2%	-2.3%	-7.5%

Q.3 Valuation ratios of Brightcom Group Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	9318.52	211.72	47.37
Price to Book	1.22	2.15	2.63
Price to Sales	4.53	7.03	4.79
EV to EBITDA	2232.32	327.98	16.48

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