Multibagger stock: MosChip Technologies share price rallies over 200% in a year. Wait for a dip, says analyst

Multibagger stock: MosChip Technologies share price has risen by more than 200% over the past one year, delivering investors with multibagger gains. On Friday's session, MosChip Technologies share price jumped over 10% to touch a 52-week high after the company notified that the Ministry of Electronics and Information Technology, GOI (MeitY)cleared the path of the firm for its application under GOIs Semiconductor Design Linked Incentive (DLI) scheme for the development of a smart energy meter IC for domestic and global markets. 

MosChip Technologies, which is based out of Hyderabad, is a semiconductor, software, and system design solutions firm with over 1300 engineers scattered across Silicon Valley, Hyderabad, Bengaluru, Ahmedabad, and Pune.

Over a five-year period, the DLI Scheme aims to provide financial incentives as well as design infrastructure support for Integrated Circuits, Chipsets, System on Chips, Systems and IP Cores, and semiconductor linked designs.

Also Read: Endurance Tech soars 20% to hit new high, up nearly 40% in just 8 days; what's behind the rally?

MosChip's application for a smart energy meter IC was examined by Centre for Development of Advanced Computing on behalf of MeitY, and payment was accepted upon completion of milestones.

According to company's exchange filing, MosChip Technologies Ltd's CEO and Managing Director, Srinivasa Rao Kakumanu, expressed gratitude to the MeitY, GOI, and CDAC, the DLI implementation agency, for approving their application under the Semiconductor DLI scheme for the development of a smart energy meter integrated circuit. DLI is an amazing policy effort by the GOI that assists Indian firms in building IP cores, SoCs, and systems, as well as developing world-class semiconductor goods for local and international markets, in order to actualise the vision of Atmanirbhar Bharat in the semiconductor sector.

Also Read: Kotak Institutional raises target price for Adani Ports and SEZ to ₹1,650, says outperformance can continue for long

On the technical front, Dr. Ravi Singh, SVP - Retail Research, Religare Broking Ltd highlighted that MosChip Technologies share price has seen a massive rally since April 2024. Technically speaking, the stock is in a consistent uptrend and is well placed above all the major moving averages. Momentum indicators are indicating that the stock is in overbought territory, so one must avoid making fresh positions at the current levels. For fresh entry, one can wait for a dip around 170 levels.

Last week, the firm justified its share price movement in an exchange filing, citing a good market reaction to their latest press announcement, which said that the company had obtained a ₹509.37 crore contract with the CDAC. This contract entails developing a high-performance computing (HPC) SoC (System on a Chip) utilising cutting-edge 5nm technology. This is a key step that will open up domestic and worldwide business prospects.

Also Read: Modi 3.0: Can auto stocks deliver PSU stocks like returns in Modi 2.0?

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.