From Rs 3 to Rs 55: India’s first and only semiconductor IC assembly and test facility company hits 5% upper circuit

Shares of SPEL Semiconductor Limited witnessed a significant surge today. The stock opened trading at Rs 55.62, which is 4.9% higher than the previous day’s closing price of Rs 53.02. What’s more, the stock hit an upper circuit limit of 5%, and currently, there are no sellers available on BSE.

At the time of writing, it is trading at Rs 55.67 and is locked into the upper circuit limit of 5%. The stock’s 52-week high and low prices are Rs 66.76 and Rs 33.15, respectively.

With a market capitalisation of Rs 257 crore, the stock has demonstrated outstanding performance in recent periods, yielding a 25% return in the last three months. Moreover, it has generated an impressive multibagger return of 490% in the last three years.

When analysing today’s share volumes, it becomes apparent that there has been a substantial increase of over 2.7 times in trading volumes compared to its average volumes on the BSE.

Furthermore, during the COVID-19 pandemic, the share price reached Rs 3 each on March 31, 2020. From these levels, the stock started rallying and never looked back, reaching an all-time high of Rs 99 each. If we calculate the return from this low to the current price, it has given a 1755% return during the same period.

Financial Performance

In the June quarter of FY24, the company’s revenue from operations experienced a significant decline of 50% YoY from Rs 10.35 crore to Rs 5.13 crore. The company reported an operating loss of Rs 0.12 crore, compared to an operating profit of Rs 2.36 crore in the corresponding quarter last year. In the Q4 FY23 company reported an operating profit of Rs 2.46 means which means on a sequential basis company’s profitability deteriorated.

Meanwhile, the net loss of the company amounted to Rs 4.04 crore, compared to a profit of Rs 1.65 crore in the corresponding quarter last year.

Observing some important ratios, ROCE and ROE are 8.75% and 11.4%, respectively. The book value of the company is Rs 10.7, which means the stock is trading at a price-to-book value of 5.2 times in the market, while the stock is trading at a PE ratio of 46.6 times in the market.

Business Overview

Natronix’s India OSAT facility is SPEL Semiconductor Limited. As India’s first and only Semiconductor IC Assembly and test facility, SPEL pioneered the Indian OSAT market and continues to experience steady growth. SPEL is a trusted and strategic contract manufacturing partner for many of the world’s leading Semiconductor companies.

It provides full turnkey solutions that include Wafer sort, Assembly, Test, and Drop-shipment services, helping customers accelerate time-to-revenue for their new products.

Additionally, it offers value-added services such as Package Design, Failure Analysis, Full Reliability Testing, Test Program Development, and Product Characterization.

SPEL’s customers include some of the biggest Integrated Device Manufacturers (IDMs) and Fabless Companies in the United States, Asia, and Europe. It offers packaging solutions for Semiconductors used in diverse end-market applications, including Communications, Consumer Electronics, Computing, Industrial, and Automotive.

Investors must keep this stock on their radar.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.