Established in 2007, Polymatech Electronics is India’s first Semiconductor chips manufacturer. The company offers microcontrollers, wireless, logic, memory and led chips.
The company designs, manufactures, and supplies opto-semiconductor chips and luminaries to a wide range of industries, including lighting, medical devices, data transmission, and specialised lighting.
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It’s second Plant is at the bottom of Krishnadevaraya Hills, Krishnagiri, Tamil Nadu.
PEPL was incorporated as subsidiary of Polymatech Company Ltd, Japan. However, in 2018, it was completely acquired by Chennai-based Mr Eswara Rao Nandam and his wife, Mrs Uma Nandam through a share purchase agreement.
Polymatech will invest $1 billion in semiconductor manufacturing by 2025. The investments will be in forward and backward integration operations of its current products and indigenisation of several products that are being imported. The company has signed an MoU with the Government of Tamil Nadu with an initial investment of $130 million.
Polymatech has successfully completed all required trials with the first phase of imported machinery that has a capacity of 250 million chips. We plan to become one of the largest chip manufacturers in Asia by 2025, said Eswara Rao.
As per the Indian Electronic and Semiconductors Association (IESA), the Indian semiconductor market is projected to reach $64 billion by 2026. Further, the global industry market size would be $340 billion by 2029 as per World Semiconductor Trade Statistics (WSTS).
Polymatech is the first opto-semiconductor chip manufacturer in India. Opto-semiconductor chips are used in a wide range of applications, including lighting, displays, sensors, and medical devices. This makes Polymatech a unique and valuable company in the Indian market.
Prime Minister Narendra Modi said in May that India’s own consumption of semiconductors is expected to cross $80 billion by 2026 and $110 billion by 2030.
According to IT Minister Ashwini Vaishnaw, the government has received many applications under the semiconductor PLI scheme and expects the process to take about 15-18 months to complete.
So far, India has received investment proposals from five global Semiconductor majors to set up semiconductor fab and display fab locally in the country.
Further, the company is supported by Japanese nationals as CTO and they are also on the board of PEPL.
Polymatech Electronics Unlisted Shares Details
Availability status: Yes Available in both NSDL & CDSL Demat accounts.
Face Value: Rs 10 per equity share
ISIN: INE0OLN01011
PAN: AAECP2981Q
CIN : U32107TN2007FTC063706
Location: OZ-13, SIPCOT Hi-Tech SEZ, Oragadam, Kancheepuram, Tamil Nadu -602105
Polymatech Share Price History: Shares of Polymatech are available in Unlisted Market from August 2023. So far, the stock has touched high of Rs 900 and low of Rs 350.
Polymatech Electronics Latest Financial Details (Figs in Rs Crore)
| FY 2023 | FY 2022 | |
|---|---|---|
| Total Income | 649.66 | 126.42 |
| Net Profit | 166.77 | 34.8 |
| EPS | 23.20 | 5.48 |
Revenue stands at 649 Cr. with a growth of 420% from FY21-22 to FY22-23.
EPS jumped from Rs. 5.5 to Rs. 23.2 per share.
The company has achieved remarkable revenue growth, registering a compounded annual growth rate (CAGR) of 139.9% between the financial years 2021 and 2023. While the net profit has increased at a CAGR of 198.8% during the same time.
This growth is evidenced by the increase in revenue from operations, which shot up from ₹450 million (m) in FY21 to ₹6,490.2 m in the financial year 2023.
The company has plans to expand its business to international markets. It intends to focus expansion primarily in North American, European, Middle East, and South East Asian markets.
Polymatech Valuation
Polymatech has total 7.2 crore equity shares of Rs 10 each. Based on current market price of Rs 800 in unlisted market, Market capitalisation (MCap) of Polymatech is around Rs 5760 crore.
Should you invest in Polymatic ? Why to invest in Polymatech ?
Key promoter, Mr. Eswara Rao Nandam has over 20 years of technological expertise in this industry.
Polymatech’s competitive edge lies in its exclusive use of in-house opto-semiconductor chips that it has designed, developed, and manufactured.
Company aims to produce 20 billion chips yearly by 2024 across two Tamil Nadu plants. Its clients include Fortune 1,000 multinational corporations.
Company has recently raised over Rs 650 crore from the private equity investors to fund the Capex expansion plan to cater the ever growing demand for semiconductors across the globe.
The company submitted its Draft Red Herring Prospectus (DHRP) to the market regulator last month on 6 October 2023.
The company aims to capitalise on its substantial scale and the need for high chip volumes by collaborating with key industry players to introduce state-of-the-art technology in the country.
Growing demand for LEDs has given the opportunity for this company to manufacture LED chips and supply in the domestic market as an import substitution product.
Further, the government’s relaxation on duties for the segment and incentives in the form of subsidies will enable the
company to price the product competitively vis-à-vis imports. The business risk profile should benefit from the strong
technological expertise and government support, which is likely to continue over the medium term.
Qualcomm Inc., a global semiconductor giant, has announced plans to outsource the manufacturing of semiconductor chips in India.
Polymatech is well-positioned to benefit from the growing demand for semiconductors in India and around the world. The global semiconductor market is expected to grow from US$ 555.9 billion in 2022 to US$ 804.7 billion in 2028. This means that Polymatech is operating in a high-growth industry with a lot of potential.