Polymatech Electronics Private Limited (PEPL) has emerged as a notable player in the Indian electronics manufacturing industry. Acquired in 2018 by Mr. Eswara Rao Nandam and Mrs. Uma Nandam from the Japanese parent company Polymatech Company Ltd., PEPL has quickly established itself as a leading manufacturer of LED semiconductor chips in India. This blog provides an in-depth look at PEPL’s growth journey, financial performance, and the current scenario of the Polymatech share price and Polymatech electronics share price in the unlisted market.
The Genesis of Polymatech Electronics
Polymatech Electronics was originally established in 2007 as a subsidiary of Japan’s Polymatech Company Ltd. The company’s acquisition by the Nandam family in 2018 marked a significant shift in its operational and strategic direction. Mr. Eswara Rao Nandam, a graduate of BITS Pilani, serves as the key promoter of the company, bringing his extensive expertise and vision to the forefront. Mrs. Uma Nandam, a commerce graduate, oversees the finance function, ensuring that the company’s financial operations are streamlined and efficient. The presence of Japanese nationals on the board and in the role of CTO further strengthens the company’s technical prowess and commitment to quality.
Located in the SIPCOT (State Industries Promotion Corporation) Hi-Tech SEZ (Special Economic Zone) facility in Oragadam, Kancheepuram, Tamil Nadu, PEPL focuses on producing high-quality LED semiconductor chips. The strategic location of this facility, coupled with the company’s emphasis on technological innovation, has enabled Polymatech Electronics to cater to the growing demand for semiconductor components in both domestic and international markets.
Financial Performance: A Remarkable Journey
The financial performance of Polymatech Electronics over the past few years has been nothing short of impressive. The company’s operating revenue has witnessed a compound annual growth rate (CAGR) of 113.83% over the last two years, while its operating profit has grown at a CAGR of 101.99% during the same period. This robust growth is reflected in the net profit figures, which have increased at a CAGR of 103.34%. The operating profit margin stands at an impressive 62.80%, showcasing the company’s efficiency in managing its operations and maximizing profitability.
In terms of financial data, the company has seen a dramatic increase in net sales, growing from a modest ₹0.4 crore in FY20 to a staggering ₹649 crore in FY23, representing a year-on-year (YOY) growth rate of 1075.1%. Total income has also shown significant growth, rising from ₹1.7 crore in FY20 to ₹649.7 crore in FY23. The net profit has surged from a negative ₹0.3 crore in FY20 to ₹166.8 crore in FY23, underscoring the company’s successful turnaround and growth strategy.
Polymatech Share Price: A Lucrative Opportunity
The Polymatech share price in the unlisted market currently stands at ₹695 per equity share, reflecting a market capitalization of ₹4995 crore. With a 52-week high of ₹1020 and a low of ₹475, the stock has shown a healthy level of volatility, providing opportunities for investors to enter at attractive valuations. The stock’s price-to-earnings (P/E) ratio of 30 and a price-to-book (P/B) ratio of 15.4 indicate that investors are willing to pay a premium for Polymatech shares, driven by the company’s strong financial performance and growth prospects.
Polymatech’s shares are available in a lot size of 100, making it accessible for both retail and institutional investors. The company’s low debt-to-equity ratio of 0.13 highlights its strong financial health, further enhancing its appeal to potential investors.
Conclusion
Polymatech Electronics has carved out a niche for itself in the Indian electronics manufacturing sector, driven by a combination of strategic leadership, technological innovation, and financial discipline. The Polymatech share price and Polymatech electronics share price in the unlisted market present a compelling opportunity for investors looking to tap into the growth story of a dynamic and rapidly expanding company. As the company continues to scale new heights, staying updated with its share price movements and financial developments will be crucial for making informed investment decisions. Check out stockify to check polymatech share price and to buy unlisted shares.