MosChip Technologies Limited

Technology — Semiconductor Equipment & Materials · NSE

₹187.50+₹2.48 (+1.34%)

DalalBaazaar Score

55 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment, falling profits.

In simple words: Reasonable but unspectacular business quality, but sales are shrinking. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:04 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of MosChip Technologies Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

MosChip Technologies Limited, a semiconductor and system design company, designs, develops, manufactures, and sells system on chip technologies and Internet on Things solutions in India, North America, and the Asia Pacific.

IndustrySemiconductor Equipment & Materials

SectorTechnology

Employees1,624

Annual revenue₹585 Cr

How does it make money?

Turns over ₹585 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation. Each of its 1,624 employees supports ₹36.0 lakh of revenue a year, the signature of a people-led business.

EBITDA margin10.8%

Net margin6.0%

Revenue / employee₹36.0 lakh

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSULTANCY SERV LT, INFOSYS LIMITED, HCL TECHNOLOGIES LTD, WIPRO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

TATA CONSULTANCY SERV LTP/E 17.3x · ROE 45.6%

INFOSYS LIMITEDP/E 15.8x · ROE 32.0%

HCL TECHNOLOGIES LTDP/E 20.4x · ROE 24.6%

WIPRO LTDP/E 14.5x · ROE 15.9%

What is its competitive advantage?Little sign of one

Returns on capital of 8.0% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE8.0%

ROE8.6%

Peer median ROE32.0%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +195% while net margin moved +93% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+195%

Margin effect+93%

DalalBaazaar Score

55/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Beta of 1.29 — amplifies market moves in both directions
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

63/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

35/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

139.9x

2Y Median

123.8x

22 monthly readings · mean 173.6x · range 87.2x–361.4x

Sector Median

16.5x

median of 4 sector peers

⚠️Current valuation is approximately 13% above its 2y median of 123.8x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 745% above the peer median of 16.5x.

vs. its own history

Fair

123.8x median over 22 months · +13%

vs. sector peers

Expensive

16.5x median of 4 peers · +745%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

139.9x

P/B

8.89x

EV/EBITDA

58.6x

PEG

1.78

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well4

Cash generation is improving
Free cash flow is up 687% over 3 years.
Return on equity is rising
ROE has improved from 5.5% to 8.6%.
Very low debt
Debt/Equity of 0.22x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Margins are compressing
EBITDA margin has slipped from 15.7% to 10.8% over 3 years.

Red Flags

1 item require attention · 1 watch

🟡Margins are compressingFinancial
EBITDA margin is down 4.9 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Self-funding with balance-sheet headroom
Positive free cash flow of ₹63 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 15.7% to 10.8%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
A premium to the sector to defend
It trades 745% above the peer median. That premium needs a reason that persists, or it closes.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 33% a year✓ 43.4% CAGR
Latest reported year was -14.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 9%✓ 10.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹63 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 8.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 4 neutral · 4 weak

Market Cap

₹3,656 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

139.9x

Expensive

Expensive — verify against sector peers

P/B Ratio

8.89x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹1.34

Profitable

Profitable on a per-share basis

ROE

8.6%

Moderate

Moderate capital efficiency

ROCE

8.0%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.22x

Low

Conservative leverage

Revenue Growth (YoY)

-14.3%

Shrinking

Sales are contracting

Profit Growth (YoY)

-77.8%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹63 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹187.5

Operating Margin

3.0%

Weak

Thin margins leave little room for error

Net Margin

4.7%

Average

Average bottom-line conversion

Current Ratio

1.62

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.29

Market-like

Moves roughly in line with the market

52W Range Position

31%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

196.8 / 204.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

27.2

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹198 Cr	₹294 Cr	₹467 Cr	₹585 Cr	+43.4%
EBITDA	₹31 Cr	₹38 Cr	₹59 Cr	₹63 Cr	+26.6%
EBITDA Margin	15.7%	12.8%	12.6%	10.8%	—
PAT (Net Profit)	₹6 Cr	₹10 Cr	₹33 Cr	₹35 Cr	+78.6%
EPS	₹0.35	₹0.52	₹1.7	₹1.75	+71.0%
ROE	5.5%	3.7%	10.2%	8.6%	—
ROCE	8.7%	5.7%	10.9%	8.0%	—
Total Debt	₹72 Cr	₹69 Cr	₹21 Cr	₹88 Cr	+7.0%
Free Cash Flow	₹8 Cr	₹4 Cr	₹86 Cr	₹63 Cr	+98.9%

🟢 Revenue has grown at 43.4% a year over 3 years.

🟢 EBITDA has grown at 26.6% a year over 3 years.

🔴 EBITDA Margin has fallen from 15.7% to 10.8% over 3 years (-4.9 pts).

🟢 PAT (Net Profit) has grown at 78.6% a year over 3 years.

🟢 EPS has grown at 71.0% a year over 3 years.

🟢 ROE has risen from 5.5% to 8.6% over 3 years (+3.2 pts).

🟡 ROCE has held roughly flat at 8.0% over 3 years.

🔴 Total Debt has grown at 7.0% a year over 3 years.

🟢 Free Cash Flow has grown at 98.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹743 Cr

Total Liabilities

₹334 Cr

Total Debt

₹88 Cr

Cash & Equivalents

₹33 Cr

Operating Cash Flow

₹93 Cr

Capex

-₹30 Cr

Shareholding (proxy)

Institutional Holding

0.4%

Insider Holding

42.6%

Peer Comparison

Company	P/E	ROE
TATA CONSULTANCY SERV LT	17.3x	45.6%
INFOSYS LIMITED	15.8x	32.0%
HCL TECHNOLOGIES LTD	20.4x	24.6%
WIPRO LTD	14.5x	15.9%

Recent News

2 mixed1 negative3 general

MOSCHIP Share Price

Upstox, 16 Oct

Top 6 Semiconductor Stocks In India To Invest In October 2026

Samco, 16 Oct

Moschip Technologies Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Supreme Court vacates status quo order on MosChip-Vayavya acquisition

scanx.trade, 17 OctM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

Moschip Tech Q1 Consolidated Net Profit Drops To ₹24M Vs ₹109M YoY Amid Margins Compression

Sahi, 27 JulResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Moschip Technologies Share Price Falls After Q1 FY27 Results

Kalkine India, 27 JulPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Watch Items

Revenue growth is negative (-14.3%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

🔴Business QualityWeak7.5/20

🟢Financial HealthStrong17.8/20

🟢GrowthStrong14.9/20

🟡ProfitabilityModerate7.1/15

🔴ValuationDemanding5.3/15

🔴RiskHigh2.6/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you.

This thesis breaks if

✓Revenue growth stays above 33% a year43.4% CAGR
✓EBITDA margin holds above 9%10.8%
✓Free cash flow remains positive₹63 Cr
✓Debt / EBITDA stays below 2x1.4x
✓ROCE stays above 8%8.0%