IT stock hits 5% upper circuit after entering into $130 Bil Defence Electronics Market 

Synopsis: IZMO Limited, through its subsidiary izmomicro, is expanding its presence in defence electronics by supplying advanced semiconductor packaging solutions, strengthening its role in India’s growing defence and high-reliability electronics ecosystem.

The shares of this  small cap company is majorly engaged in the business of interactive marketing solutions offering high tech automotive e-retailing solutions in North America, Europe, and Asia, hit upper circuit after entering into defence electronics market and successfully commences supply and operations.

With the market capitalization of Rs. 969 Crores, the shares of IZMO ltd hit upper circuit of 647.45 per share raising nearly 5 percent from its previous day closing of Rs. 616.65 per share and is trading at a P/E of  26.1 whereas industry P/E stands at 20.1 

Why the stock hit upper circuit: 

Izmo’s subsidiary, izmomicro, has begun delivering advanced semiconductor packaging solutions to the defense electronics market in India, signifying the company’s continued growth and expansion into the mission-critical and high-reliability market. The company is actively delivering solutions in high-frequency RF module packaging and radar receiver module assembly, hence becoming part of the defense electronics market value chain.

Izmo’s izmomicro is delivering packaging solutions for RF integrated circuits and front end modules, especially designed to function in microwave and millimeter wave frequencies. The company’s solutions include QFN packaging, hermetic and semi-hermetic enclosures, and multiple-chip integration of RF, analog, and digital components. Izmo is also involved in the production of radar receiver modules, especially designed to handle signal reception, amplification, filtering, and digitization, especially for airborne, shipboard, and ground-based defense electronics.

The global defence electronics market size is above 130 billion USD, and India’s defence modernisation drive has led to an increase in demand for domestic defence electronics suppliers. At present, izmomicro has a Class 1000 cleanroom facility in Whitefield, Bengaluru, and provides System-in-Package (SiP) services, IC packaging, silicon photonics, RF/microwave assembly, and co-packaged optics, which will help the company leverage the rising defence electronics market.

About the Company and Financials: 

Izmo ltd. founded in 1995 is into the business of interactive marketing solutions. It is the World leader in Automotive Interactive Marketing Solutions. The Company offers hi-tech automotive e-retailing solutions in North America, Europe, and Asia. They offer sales performance coaching, OEM-certified CRM and ILM Solutions, etc.It also owns the world’s largest collection of Automotive Images and Animation and has a client base of some of the largest automotive retail groups in the world. izmo.ai platform is for AI solutions for Automotive.

Year on year analysis: Revenue from operations has remained same at Rs. 59 Crores. Operating profit has increased from Rs. 8 Crores to Rs. 14 Crores, up 75 percent and net profit has increased from Rs. 6 Crores to Rs. 12 Crores, up 100 percent 

Quarter on Quarter analysis: Revenue from operations has decreased from Rs. 60 Crores to Rs. 59 Crores, down 1.6 percent. Operating profit has remained same at Rs. 14 Crores and net profit has decreased from Rs. 13 Crores to Rs. 12 Crores, down 7.6 percent 

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