The benchmark equity indices on Friday’s trading session rose to record highs lifted by a solid rally in information technology (IT) stocks. The NSE Nifty 50 closed 186.20 points or 0.77 percent higher to finish the day’s trading at 24,502.15, while the BSE Sensex gained 622 points or 0.78 percent to finish the day’s trading at 80,519.34.
Listed below is one such Small cap stock that has delivered multibagger returns of 4,880 percent to its stakeholders in 4.5 years:
ASM Technologies Ltd
With a market capitalization of Rs. 1,812 crores, the shares of ASM Technologies Ltd started Friday’s trading session on a higher note at Rs. 1,529.90, locking a 5 percent upper circuit and also recorded as the company’s fresh 52-week high compared to its previous close of Rs. 1,466.15 apiece.
Financials:
Looking at the company’s financial statements, revenue declined by approximately 20 percent from Rs. 55.72 crores in the December quarter to Rs. 44.59 crores in the March quarter. Conversely, net losses increased from Rs. 72 lakhs to Rs. 3.39 crores over the same period.
On a YoY basis, the company experienced a 14 percent decline in revenue, decreasing from Rs. 51.94 crores in Q4FY23 to Rs. 44.59 crores in Q4FY24. Concurrently, net profits shifted from a profit of Rs. 37 lakhs to a loss of Rs. 3.39 crores during the same timeframe.
Returns:
In July 2020, the stock price was trading at Rs. 30 exhibiting a gain of around 4,880 percent compared to the current price. For example, if someone had invested Rs. 10,000 into the company’s stock 4.5 years ago, it would have converted to approximately Rs. 4.98 lakhs now.
Recent Developments:
During the recent quarter, Ace Investor Mr Mukul Agrwal bought a fresh stake in the company’s shares by acquiring approximately 7.62 lakh equity shares equivalent to 6.48 percent and the current holding value of his investment amounts to around Rs. 116 crores.
The company has already raised Rs 70 crore (around $8.5 million) and will receive the remaining Rs 100.1 crore (about $12.5 million) over the next 18 months. These funds will used to enhance capabilities, drive technological advancements, and solidify the company’s presence in key global markets.
Other Details:
In 2022, the company formed a 50:50 joint venture with vacuum technology manufacturer Hind High Vacuum (HHV) to manufacture semiconductor equipment in India.
The joint venture will perform design-led engineering and manufacturing of tools, subsystems, subsystem components, and components for the semiconductor and solar industries.
ASM Technologies has made some strategic investments in emerging technologies across areas like industrial automation, cybersecurity, autonomous vehicles, cloud computing, and engineering workflow management.
Company Profile:
Established in 1992, ASM Technologies Limited is a pioneer in design-led manufacturing in the semiconductor and automotive industries and has the expertise and understanding of the design and development of System and Sub Systems of PVD, CVD, RTP, Etch, CMP and Inspection tools.
The company is engaged in the business of providing consulting and product development services in the areas of engineering services and product R&D.
Written By Vaibhav Patil
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