The shares of this smallcap company locked 5 percent upper circuit after reporting an increase in net profits by 357 percent QoQ. On a YTD basis, the stock has delivered a multi-bagger return of 177 percent to its shareholders.
Price Movemnet:
With a market capitalization of Rs. 5,263 crores, the shares of Moschip Technologies Ltd started Monday’s trading session on a lower note at Rs. 262 compared to its previous close of Rs. 264.95. During the trading session, the shares locked a 5 percent upper circuit at Rs. 278.15 apiece.
What Happened:
Such a bullish movemnet in the share price was observed after the company declared it Q1FY25. Quarterly, the revenue jumped by around 7 percent from Rs. 75.42 crores during the March quarter to Rs. 80.35 crores in the June quarter. In addition, the net profits magnified by 357 percent from Rs. 87 lakhs to Rs. 3.98 crores during the same period.
Comparing the same metrics on a YoY basis, the revenue surged by 41 percent from Rs. 57.01 crores during Q1FY24 to Rs. 80.35 crore in Q1FY25. On the other hand, the net profits zoomed by 24 percent from Rs. 3.21 crores to Rs. 3.98 crores during the same timeframe.
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During the quarter, MosChip secured a Rs. 509.37 crores 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, revenue from this project did not commence in the current quarter and is anticipated to begin impacting the company’s financials starting in Q2 FY 2025.
Recent Development:
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 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.
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.
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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