The shares of this multibagger semiconductor stock under the ‘small-cap’ category hit its 10 percent lower circuit in Monday’s trading session after the company reported underperforming numbers as far as the bottom-line numbers are concerned.
With a market capitalization of Rs 2,699.06 crores, the stocks of Moschip Technologies Limited closed their trading session on Monday at Rs 143.15, hitting its 10 percent lower circuit compared to the previous closing levels of Rs 159.05 apiece.
Such a sudden drop in the share prices of the semiconductor company was witnessed after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), announced the financial results for Q4FY24, viz, for the quarter ended March 2024.
On a sequential basis, the company’s prime business indicators such as operating revenues and after-tax profits showed negative movements. The former moved down from Rs 89.63 crores during Q3FY24 to Rs 75.42 crores during Q4FY24, and the latter, in congruence, reduced from Rs 2.19 crores to Rs 86.56 lakhs, representing a dip of approximately 60 percent.
Comparing Q4FY23 v/s Q4FY24, the metrics mentioned above reported movements in opposing directions with the former, on one end, increasing from Rs 53.83 crores to Rs 75.42 crores, and the latter, on the other end, slipping from Rs 1.52 crores to Rs 86.56 lakhs.
In addition to the above, the company also reported underperforming return ratios with the return on equity (RoE) reducing from 9.86 percent during FY22 to 5.46 percent during FY23, and the return on capital employed (RoCE), keeping the time horizon the same, slipping from 18.08 percent to 8.77 percent.
Despite the negative performance, the company’s stock has proven to deliver multibagger returns of 128 percent to its stakeholders in the past year, i.e., if someone had invested Rs 1 lakh into the company’s stock a year ago, it would have converted to Rs 2.28 lakhs.
Established in 1999, Moschip Technologies Limited is a semiconductor company engaged in developing and manufacturing system on Chip (SoC) technologies. The company offers various products, some of which include I/O Connectivity and SoCs. Out of its operating segments, the company generates maximum revenue from the ‘Semiconductor’ segment.
Written by Amit Madnani
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