The unlisted stock market in India has witnessed raging interest in recent years particularly to retail investors, who would be trying to explore high-growth companies even before they go into the stock market. This grey market is a hotbed because it has more than 75,000 core rupees worth of trades that take place in the unlisted arena every year. Although such a segment presents greater risks with lower liquidity and regulatory exertion, on the other side it exposes us to such potential enterprises such as Polymatech Electronics Pvt. Ltd. which can be rated as one of the brightest of India as far as semiconductors are concerned.
Polymatech has been on the radar of investors due to its adventurous expanding policy and entrance into a field that is critical to the Indian future technological advancement. The company as originally a Japanese joint venture was wholly purchased by Indian promoters namely Eswara Rao Nandam and Uma Nandam in 2018. Since that time it has redirected itself forcefully into the production of opto-semiconductors, LED chips, sensors and microcomponents involved with lighting, health care devices, agricultural machinery etc.
About The Company
Polymatech is based in its 7.5 lakh sq. ft. facility in Oragadam, Tamil Nadu and has managed to expand its manufacturing capacity at a steep pace. Also, the company has already indicated that it is investing $1 billion (appr. 7,500 crore) to construct new chip production facilities, one of which involves a huge scale-up in Krishnagiri. It has also tied up with Orbray Co. Ltd. of Japan to internalize sapphire ingot fabrication- which is a vital part in the opto-semiconductors. Having an idea of manufacturing not less than 10 billion pieces of chips per year by 2026, Polymatech aims to be among the largest chip manufacturers in the Asian continent in its sphere.
Financial Analysis
- This ambition is projected in the financials. Polymatech registered a revenue of 126 crore in FY22 and it increased almost 4.7x to 650 crore in FY23.
- Profits were not left behind and PAT also increased to rupees one hundred and sixty seven crore.
- With 7000 crore of an order book, the company has registered a phenomenal EPS of 31 in FY24.
- It registered a return on equity (ROE) of about 45%, and a return on working capital (ROWC) of more than 42%, which indicates effective capital utilization.
These figures keep investors hopeful, especially with India at the forefront of attaining semiconductor independence.
Nevertheless, Unlisted has seen a volatile share price performance. Later in the year 2023 and the start of 2024, the grey share price of Polymatech jumped to 900 in the grey market. Then, another stock split was carried out at the ratio of 5:1 (which diluted the face value of the stock to 2, rather than 10), causing the realignment of the prices.
The split-adjusted share price has already dropped further to 52-55 in the recent estimates by such sites as Stockify as of early 2025. The drop brought concerns; however, when looked at, the downfall can be seen as a result of grey market overpricing, a crisis in cooling off after a period of hype, and general corrections in the market rather than an actual weakness in the company regarding its growth direction.
Precisely, but at the same time, risks are to be observed. The corporate governance issue was related to the resignation of its statutory auditor at the end of 2024. Some investor forums have raised questions on cash flow management and delays in receivables. On the unlisted market, these can cause a rapid fall in prices administrated to the lack of transparency and panic. Nonetheless, its long-term plan is still ongoing as big orders and capacity additions continue, and with one planned as IPO, possibly between 750-1500 crore, investors have kept their heads up.
Conclusively, Polymatech is a sheer gamble on the semiconductor future of India. Though the price of unlisted shares will be volatile in the near term, growth-hungry investors with a longer-term view of investing can expect the company to be favorably placed in the deep-tech manufacturing industry. India is developing its chip ecosystem, and players such as Polymatech might be its anchor.
You are investing in Polymatech by buying Polymatech unlisted shares in India.