A leading micro-cap semiconductor player has unveiled ambitious growth targets, projecting revenue milestones of Rs. 50 crore by FY26. With strategic expansion plans and a solid business pipeline, the firm anticipates a 25-30% surge in H2 FY25, followed by accelerated growth of 50-75% annually over the next two years, driven by automotive sector advancements.
Stock movement:
In Tuesday’s trading session, IZMO Limited‘s share jumped by 7.06 percent from the previous close of Rs. 433.85. The stock opened at Rs. 442.95 and is currently trading at Rs. 464.50 with a high of Rs. 472.95 and a low of Rs. 439.55. The market capitalization now stands at approximately Rs. 659.30 crore.
What is the news?
IZMO Limited’s management has set an ambitious growth in FrogData segments target of 25-30% in H2 FY25, targeting 50%-75% year-on-year growth over the next two years, indicating strong confidence in the business pipeline.
The company expects to maintain a gross margin of 30–40%, particularly in its IZMOMicro segment. The company’s IP-based model and specialized capabilities drive a higher margin profile, differentiating from traditional low-end electronics manufacturing services and highlighting its value-added offerings.
IZMO Micro Systems, a new subsidiary focused on EV technologies, expects Rs. 5-10 crores in revenue by FY25 and Rs. 30-50 crores by FY26, driven by its SIP manufacturing facility in Bangalore.
Semiconductor Business
IZMO Limited’s semiconductor business is poised for significant growth, with projected revenue of Rs. 30-40 crores by FY26, driven by automotive clients. Current revenue from this segment is expected to reach Rs. 5–6 crores by FY25.
Expansion and Acquisition:
IZMO is driving growth through strategic expansion and acquisitions. The company has launched a Spanish-language platform to tap into the U.S. Hispanic automotive market, with over 2,000 dealers already signed up.
Additionally, the acquisition of Geronimo Web enhances its presence in Europe and Latin America, strengthening IZMO’s position as a leading digital platform provider for automotive marketing. The company
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Strategic focus
IZMO Limited’s strategic focus is on strengthening its position in the automotive sector, leveraging deep domain expertise and significant market potential. With annual R&D investments of Rs. 20–25 crores, the company aims for continuous innovation.
IZMO projects 25%-30% year-on-year growth, with no immediate plans for diversification, focusing on sustained success in automotive.
Recent quarter results and ratios:
IZMO Limited’s revenue has increased from Rs. 45 crore in Q2 FY24 to Rs. 50 crore in Q2 FY25, which has grown by 31.11 percent YOY. The net profit of IZMO Limited has also grown by 500 percent, from Rs. 5 crore in Q2 FY24 to Rs. 30 crore in Q2 FY25.
IZMO Limited’s revenue and net profit have grown at a CAGR of 15.24 percent and 30.01 percent, respectively, over the last five years.
In terms of return ratios, the company’s ROCE and ROE should be 9.53 percent and 8.99 percent, respectively. The debt-to-equity ratio of the company is to be 0.01x, which shows the company is almost debt-free. IZMO Limited’s EPS is to be Rs. 166.
Shareholding pattern
In September 2024, IZMO Limited had a majority stake held by the promoters at 31.82 percent, foreign institutional investors at 4.29 percent, and the public at 63.89 percent.
Company Overview:
Izmo Limited is an India-based company providing automotive retail solutions and interactive media content for the industry. It offers e-retailing solutions, including online stores, car animations, marketing programs, CRM, and ILM solutions across North America, Europe, and Asia. Additionally, Izmo specializes in enterprise software, offering connectivity and security products from Open Text.
Written By – Nikhil Naik
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