Shares of bounced back over 3 percent on Wednesday to close at ₹243.85, a day after they tumbled 10 percent in Tuesday’s trade. The sharp fall came on the heels of a blistering seven-session rally that had lifted the counter nearly 60 percent to an all-time high of ₹268.75.
Even after the recent correction, MosChip has delivered an impressive 45 percent gain, reflecting continued investor enthusiasm.
Policy Boost Fuels Sentiment
The rally in MosChip has been driven by optimism surrounding India’s ambitions. At the Semicon India 2025 Summit, Prime Minister Narendra Modi said the country is poised to capture a significant share of the USD 1 trillion global semiconductor market.
Modi highlighted a combination of policy support, infrastructure development, and talent skilling as key enablers for growth, while confirming that work is already underway on the second phase of the India Semiconductor Mission (ISM 2.0).
According to the Ministry of Electronics and Information Technology, the first phase of ISM has already attracted ₹1.5 lakh crore in investments across 10 approved projects. Union Minister Ashwini Vaishnaw added that India’s design ecosystem and manufacturing base give the country a strong position in global semiconductor supply chains.
Expert View
Harshal Dasani of INVasset PMS believes the long-term story remains compelling.
“The Hyderabad-based fabless semiconductor firm has carved a niche in ASIC, SoC, IP, and IoT design services, with applications across aerospace, defense, automotive, and healthcare. Its launch of the DigitalSky GenAIoT platform earlier this year signals a push into AI- and IoT-enabled systems, while the development of an indigenous smart energy meter IC under the government’s DLI scheme demonstrates alignment with national priorities,” he said
Dasani added that MosChip’s revenues have nearly doubled over the last two years, with trailing sales standing at about ₹522 crore. The company maintains a conservative balance sheet with a debt-to-equity ratio of just 0.18, providing financial flexibility to scale up operations without overleveraging.
Cautious on Valuations
However, Dasani cautioned that valuations are stretched. MosChip trades at over 120 times trailing and nearly 15 times book value, significantly higher than global peers. Institutional participation remains limited — have trimmed their stake to about 1 percent, and have stayed away — leaving the stock highly exposed to retail sentiment, which accounts for more than a third of the total shareholding.
Promoters hold 44.28 percent in MosChip with no pledged shares, while over 2.5 lakh small retail investors collectively own 37.1 percent of the company. Institutional and mutual fund participation remains absent.
“Margins remain volatile, and heavy dependence on a few contracts adds concentration risk. Moreover, India’s limited fabrication capacity continues to restrict seamless scaling of design-led models,” he added
He further noted that execution strength, consistent earnings growth, and higher institutional participation will be critical to sustaining long-term value creation.
Stock Performance
MosChip’s stock performance has been mixed in the short term. Over the past year, the stock has been largely flat, rising just 1 percent. However, it has delivered strong returns in recent months, surging 51 percent in the last six months and 22 percent in the past three months. Over the longer term, MosChip has been a , skyrocketing 1,964 percent over the last five years.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.