Hidden Gem Stock which is the largest global producer of interactive media content for the automotive industry and engaged in providing automotive retail solutions for dealerships worldwide, hits a 5 percent upper circuit in the day’s trade upon foraying into the Semiconductor business.
Price Action
With a market capitalization of Rs. 579 Crores, the shares of IZMO Limited hit a 5 percent upper circuit in the day’s trade at Rs. 409.50 per equity share, from its previous day’s close price of Rs. 390.
Foray Into Semiconductor Business
IZMO Limited has announced the launch of Izmo Microsystems focused on cutting-edge semiconductor packaging and manufacturing which is operational now. This new venture marks the establishment of a state-of-the-art, System-in-Package (SiP) manufacturing facility in Bangalore, thereby solidifying India’s role in the global semiconductor supply chain.
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The new Izmo micro facility will offer fully integrated System-in-Package, SiP solutions that cater to high-density, high-performance systems across multiple industries, poised to meet the growing demand for compact, efficient, and high-performance electronic devices in sectors such as consumer electronics, automotive, telecommunications, and green energy.
The comprehensive range of services offered by Izmo Micro are
• Custom SiP & IC Packaging for complex assemblies
• High-reliability components and RF/MW packaging solutions
• Co-packaged optics and EV/green energy power modules
• Advanced system design and manufacturing capabilities
• State-of-the-art facilities featuring a Class 1000 Clean Room, 3D die stacking, and fine pitch wire bonding
With the global SiP market expected to grow from $16 billion in 2020 to $29 billion by 2026, Izmo Micro is well-positioned to lead this sector’s growth in India.
About the Company
Izmo Limited is engaged in providing automotive retail solutions for dealerships worldwide and is the largest global producer of interactive media content for the automotive industry. Its products include a Digital Retail Web Platform, Parts Distribution CRM, Search Engine Marketing, and Data Analytics, among others.
Business Segments
It has 3 business divisions namely Izmo Cars a Digital Retail Platform for the Auto Industry, Frogdata an AI Platform, and Izmo Studio an Interactive Exhaustive library of automotive images, videos, and animation. Its other products include izmoEmporio 3D CGI Virtual Showroom and izmoVR a Virtual Car Test Drive.
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Revenue Breakdown
Coming to the revenue breakdown as per the business divisions, Izmo Limited generated 44 percent of its revenue from Izmo Studio, 29 percent from Frog Data, and 27 percent from Izmo Cars.
Izmo Limited generates 66 percent of its revenue from North America, 24 percent from Europe, and 10 percent from India. Its top customers Stellantis & You France contribute 6 percent of the revenue, Add-On Auto 5 percent, Microsoft Online 2 percent, and others 87 percent.
Customer Base
It has a strong customer base, some of the Marquee clients for automotive include, Stellantis France, Emil Frey, Audi, Porsche, Nissan, Ford, Toyota, Suzuki, Citroen, Sony, and Hertz. For Information technology, Microsoft, Infosys, Wipro, Dataone, IBM and Rambus, In telecommunication Airtel, Idea and many others.
Financials & Ratios
Its revenue from operations grew by 14.68 percent from Rs. 41.49 Crores in Q1FY24 to Rs. 47.68 Crores in Q1FY25, accompanied by profits of Rs. 5.01 Crores to Rs. 6.03 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 8.99 percent, and a return on capital employed (ROCE) of 9.35 percent. It has reported a debt-to-equity ratio of 0.03.
Written by: Bharath K.S
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