It is often said in the stock market that patience is the key that can bring huge profits even to a small investor. Many times such companies appear in the market, whose names may not be much discussed, but their performance leaves the big giants behind. Izmo Limited is one such name which has proved this in its long term journey. This company, which was once known as just a ‘penny stock’, has today proven to be a moneylender for its investors. The kind of momentum this stock has gained in the last 12 years has surprised even the market analysts.
Now the company’s new flight in semiconductor sector
Not only the past returns, but also the future of the company has now become a topic of discussion. The company shared a big information through exchange filing, which has further increased the enthusiasm of investors. Izmo Limited is now going out of its traditional boundaries and entering the high-tech sector. The company plans to enter the field of semiconductor packaging and opto-electronic solutions.
Market experts believe that the coming era is of technology and chip manufacturing. This strategic change of the company can give a new direction to its growth. According to the company’s estimates, the market for optical transceivers may increase from $13.5 billion to $28 billion by the year 2030. This demand is expected to increase further with the expansion of Artificial Intelligence (AI) and 5G technology, due to which the company can get the benefit of about 14 percent CAGR (Compound Annual Growth Rate).
Business will run at the speed of 27%
The company has said in its presentation that the market of semiconductor packaging for silicon photonics, which is currently worth $2 billion, can increase to beyond $10 billion. In this particular segment, the company has predicted an annual growth (CAGR) of 25 to 27 percent. For an ordinary investor, this means that the company is now investing money in an area where there is very little scope for decline in demand in the next 5 to 10 years. This new business model can prove to be a ‘game changer’ for Izmo.
Got great returns on investment of ₹1 lakh
Timing and trust are of great importance in the world of investment. If we look at the figures of Izmo Limited, the picture has completely changed from August 2013 till now. During this period, the company’s shares have given incredible returns of more than 12,200 percent to its investors.
If we understand this from the perspective of a common investor, then if a person had invested only Rs 1 lakh in 2013 with confidence in this company and had kept it, then today the value of that investment would have increased to about Rs 1.23 crore.
Risk or opportunity in stocks?
Despite delivering excellent returns over a long period of time, Izmo Limited has also not been untouched by the recent turmoil in the stock market. According to National Stock Exchange (NSE) data, the stock closed 0.86 per cent down at Rs 793.50 in Friday’s trading session.
While this stock has given a profit of 1,520 percent in the last five years and has gained 938 percent in the last one year, it has seen pressure in the short term. In the last one month, there has been a decline of about 19.15 percent in the share price. Its 52-week high was Rs 1,374.70, while the low was Rs 229.70. At present the market cap of the company is around Rs 1,186.57 crore. Experts say that we may see a rise in this stock in the coming times.
