Shares of this smallcap company locked 5 percent upper circuit after C-DAC partners with the company and Socionext for the design and development of a High-Performance Computing Processor AUM based on Arm architecture.
Price Movement:
With a market capitalization of Rs. 5,456 crores, the shares of Moschip Technologies Ltd started Wednesday’s trading session on a higher note at Rs. 289.35, locking a 5 percent upper circuit compared to its previous close of Rs. 275.60 apiece.
What Happened:
As per the exchange filing, the Centre for Development of Advanced Computing (C-DAC) has partnered with MosChip Technologies, and Socionext Inc. for the design and development of a High-Performance-Computing (HPC) Processor SoC based on the Arm architecture and built on TSMC (Taiwan Semiconductor Manufacturing Company Limited) 5nm technology node.
C-DAC is collaborating with the consortium of MosChip Technologies, India and Socionext Inc., Japan for the design & development of this indigenous HPC Processor AUM, based on the high-performance Arm Neoverse V2 CPU platform, and incorporates advanced packaging technology. This approach allows them to retain ownership of unique differentiators, providing a significant competitive edge.
Financials:
Looking at the company’s financial statements, the revenue decreased by 16 percent from Rs. 89.63 crores during the December quarter to Rs. 75.42 crores in the March quarter. On the other hand, the net profits decreased by declined by 60 percent from Rs. 2.19 crores to Rs. 87 lakhs.
Recent Developments:
Earlier, Moschip Technologies had secured a Rs 509.37 crore contract from the Centre for Development of Advanced Computing (CDAC). This contract involves the development of a high-performance Computing (HPC) SoC (System on a Chip) using state-of-the-art 5nm (nanometer) technology.
Shareholding Pattern:
According to the latest shareholding pattern, Promoters possess 47.33 percent of the company’s shares, while Foreign Institutional Investors (FIIs) hold a 2.80 percent stake. Retail investors account for the remaining 49.76 percent stake.
Future Outlook:
The company is focusing on research, development, and technology advancements, particularly in embedded software and AI/ML domains. Additionally, the company is aligning with India’s push for local semiconductor manufacturing to cater to domestic demand and contribute to technological advancements within the Indian semiconductor ecosystem.
Returns:
In just one month, the stock has delivered a multibagger return of 103 percent to its shareholders. For example, if someone had invested Rs.1 lakhs in these shares a month ago then it would have turned Rs. 2.03 lakhs now.
Company Profile:
Headquartered in Telangana, MosChip was incorporated in 1999. The company is a semiconductor and system design company with a focus on Turnkey ASICs, Mixed Signal IP, Semiconductor and Product Engineering, and IoT solutions catering to various industries such as Aerospace and Defence, Consumer Electronics, Automotive, Medical, Networking and Telecommunications.
Written By Vaibhav Patil
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