On Friday’s trading session, Indian stock market benchmarks, the Sensex and the Nifty 50, each plunged 1 percent in early trade due to an across-the-board selloff amid weak global cues.
At close, the Sensex closed 885.60 points, or 1.08 percent, lower at 80,981.95 and the Nifty ended with a loss of 293.20 points, or 1.17 per cent, at 24,717.70
Listed below is a semiconductor stock that has delivered multibagger returns of 1,800 percent to its stakeholders in 4 years:
Mindteck (India) Ltd
With a market capitalization of Rs. 1,114 crores, the shares of Mindteck (India) started Friday’s trading session on a lower note at Rs. 432 compared to its previous close of Rs. 442.75. During the trading session, the shares hit a low of Rs. 423, losing around 2 percent and closed the day at Rs. 440 apiece.
Looking at the company’s financial performance, the revenue increased by 2 percent from Rs. 95.75 crores during the December quarter to Rs. 97.90 crores in the March quarter. On the other hand, the net profits declined by around 10 percent from Rs. 7.19 crores to Rs. 6.48 crores during the same period.
Comparing the same metrics on a YoY basis, the revenue jumped by around 10 percent from Rs. 88.74 crores during Q4FY23 to Rs. 97.90 crores in Q4FY24. In addition, the net profits surged by 20 percent from Rs. 5.41 crores to Rs. 6.48 crores during the same timeframe.
In July 2020, the stock price was trading at Rs. 23 exhibiting a gain of around 1,800 percent compared to the current price. For example, if someone had invested Rs. 10,000 into the company’s stock 4 years ago, it would have converted to approximately Rs. 1.93 lakhs now.
In terms of key financial metrics, the company reported a return on equity of 12.37 percent and a return on capital employed of 15.24 percent for the period spanning FY23-24. Additionally, the net profit margin stood at 7.08 percent during the same timeframe.
According to the latest shareholding pattern, Promoters hold 64.61 percent of the shares, Foreign Institutional Investors (FIIs) have 0.22 percent, Domestic Institutional Investors (DIIs) own 0.02 percent, and Retail Investors possess the remaining 35.15 percent.
Mindteck (India) Ltd has established itself as a prominent player in the semiconductor industry, providing specialized software and hardware solutions tailored to the needs of semiconductor capital equipment manufacturers, subsystem vendors, and fabrication facilities (FABS).
The company offers product lifecycle services that encompass new product development, sustenance, testing, support, and performance improvement. This enables clients to leverage their core engineering teams effectively.
The company also provides ready-to-deploy semiconductor solution accelerators, including device simulators and automated testing frameworks. These tools are designed to lower project risks and costs while shortening project timelines.
Furthermore, Mindteck serves various industries, including healthcare and medical devices, life sciences, chemical analysis, electronics, data storage, and Government.
The company has a global footprint with offices and development centres in India, the US, Canada, Europe, Singapore, Malaysia, Bahrain, and the Philippines.
Written By Vaibhav Patil
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
