Brightcom snaps 5-day winning streak, shares trade 4% down

After surging 25 percent in the past five trading sessions, Brightcom Group shares have snapped the winning streak and traded down over 4 percent on June 5.

At 12:30pm, the stock was quoting at Rs 19.70 on the NSE, lower by 4.14 percent from the previous close.

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In April, the Securities and Exchange Board of India (Sebi) slapped a show-cause notice on the company over alleged irregularities in financial accounting and non-disclosure of material information.

The market regulator said that the company overstated its profits for FY20 by understating expenditures by using irregular accounting practices. Sebi also made observations on the company’s shareholding pattern for promoter holdings in the period which, it feels, were not rightly reported.

Also Read: Brightcom: Analysis of financial statements before SEBI order reveals several governance lapses

Following this, the stock hit a 52-week low of Rs 9.35 on April 28. Since then, it has managed to gain some ground.

Boost to the stock price came in recent days after the company reported a net profit of Rs 229.15 crore for the quarter ended March 2023, as against Rs 223 crore last year.

The company registered a total income of Rs 1,368.50 crore in Q4 FY23 as against Rs 1,239 crore a year back.

Brightcom shares saw a surge in retail interest back in 2021, when the stock skyrocketed from Rs 3 to Rs 117. As financial irregularities were revealed, the company lost close to 90 percent of investors’ wealth in a matter of 16 months.