Spel Semiconductor Ltd Multibagger 2021 Analysis

In this article we can explore the possibility of Spel Semiconductor Ltd as a Multibagger 2021 Stock based on Value Investing principles.

Website  www.spel.com
CMP
Rs. 53.00

About Spel Semiconductor Ltd

SPEL Semiconductor Limited is India’s first & only Semiconductor IC Assembly & Test facility. SPEL pioneered the Outsourced Semiconductor Assembly & Test Services (OSAT) market in India and continues to steadily do so. SPEL is a trusted & strategic contract manufacturing partner for many of the world’s leading Semiconductor companies.

Established in 1988 and listed on the Bombay Stock Exchange ever since, SPEL initially supplied to the domestic market. SPEL soon acquired the expertise to serve the global market. SPEL’s Customers are some of the biggest Integrated Device Manufacturers (IDMs) and Fabless Companies in the United States and Asia. SPEL offers Packaging Technology for Semiconductors used in diverse end-market applications including Communications, Consumer Electronics and Computing.

SPEL Semiconductor Limited is engaged in offering electronic integrated circuits (ICs). The Company operates IC assembly and test facility. The Company’s factory is located in MM Nagar, near Chennai. The Company provides solutions that include wafer sort, assembly, test and drop-shipment services. The Company also offers value added services, such as package design, failure analysis and reliability test, test program development and product characterization. The Company’s customers include integrated device manufacturers (IDMs) and fabless companies in the United States, Asia and Europe. The Company offers packaging solutions for semiconductors used in a range of end market applications, including communications, consumer electronics, computing, industrial and automotive. It offers environmental reliability stress tests, such as temperature and humidity stress test, pressure pot test, high temperature storage life test and steady state temperature humidity bias life test.

Spel Semiconductor Ltd Multibagger 2021 Analysis

Products

  • Electronic Integrated Circuits(ICs)

Services

  • Wafer sort Assembly
  • Test and Drop-shipment services
  • Package Design
  • Failure Analysis
  • Full Reliability Test
  • Test Program Development
  • Product Characterization

Profit & Loss

Spel Semiconductor Ltd Multibagger 2021 Analysis

Warren Buffet, Value & Growth Checklist

Capitalization250 Crore
Sales Increasing past 3 YearsNo2d260 red
Profit Increasing past 3 Years No, Loss2d260 red
Durable Competitive Advantage Okay
PE RatioN.A2d260 red
PB Ratio4X
Debt Equity Ratio0.73
Intrinsic Value Discount0% 2d260 red
Promoter Holding & Increase59%, No Increase bce05 green e1587451073732
Multibagger Returns100-200% 5 Year bce05 green e1587451073732

Positives

The company can take advantage of the Semiconductor Boost in the country.

Negatives

  • Company is in Loss
  • Stock is trading at 4 times its book value
  • Company has low interest coverage ratio.
  • The company has delivered a poor sales growth of -9.24% over past five years.
  • Company has a low return on equity of -6.59% for last 3 years.
  • Company might be capitalizing the interest cost
  • Company has high debtors of 926.26 days.

Summary

As per the Value Investing grounds the company have very low Multibagger Potential at current over-price valuation.

DISCLAIMER

Logos are Copyright of respective owners. The advice or opinions here is not for public distribution and has been furnished to you solely for your information purpose and must not be reproduced or redistributed to any other person.  Any report is created from Public Source of Information available through Internet from Company website & Other websites & the Research Analyst does not guarantee the Validation of Content in this report

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