Spel semiconducter

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hi guys recently i go thru some analyst blogs i find intresting scrip spel semi.u pl go thru spel website and read presentation of spel and also read annual report of spelsemi . it looks from the annual report that new mgmt of spel is quite confident and take this co.to new high.so pl read article and share your view

**SPEL Semiconductor Ltd - Potential Multibagger? **

Natronix Semiconductor Technology Private Limited, Singapore (Natronix-Sg), has on Mar 24, 2014 acquired 56% of SPEL Semiconductor Limited (SPEL). This acquisition was pursuant to the approvals granted by the Securities & Exchange Board of India (SEBI).

Natronix-Sg is a member of the Valingro Group promoted by Mr. Ar Rm Arun. Headquartered in Singapore, Natronix-Sg is focused on Semiconductor Packaging and Semiconductor Design. Natronix-Sg has already targeted further acquisitions within the Outsourced Semiconductor Assembly & Test (OSAT) and Design & Verifications (D&V) segments.

A 100% EOU, SPEL has in the past been constrained in raising debt expansion capital. With this acquisition, SPEL looks forward to securing cost-effective debt capital that will better position itself in the global scenario. The acquisition will assist SPEL in growing within its existing Customer base while also bringing in further advanced semiconductor packaging capabilities into India. SPEL will importantly be ready to enable Indiaas self-sufficiency within the electronics manufacturing supply chain.
Natronix is a Semiconductor Packaging & Design company focusing on complex solutions to global Semiconductor companies. Headquartered in Singapore, Natronix has carved a niche within its business, fuelling growth by continually introducing latest technologies, capacity expansions and acquisitions.

Natronix’s India OSAT (Outsourced Semiconductor Assembly & Test) presence is SPEL Semiconductor Limited. With over 25 years of Business excellence & a privileged Customer base, SPELas Packaging capabilities include the Leaded & QFN Packages. Being Indiaas 1st & only OSAT facility, SPELas well-defined Package Roadmap entails launching further high-end Packages.

Natronix has planned strategic acquisitions of APAC OSAT companies to further its vision of
being the Natural Destination for global Semiconductor companies. This will enable Natronixas presence within established Semiconductor Ecosystems.
Natronix has recently forayed into Semiconductor Design. Using latest technologies, we strive to improve our Customersa time-to-market & profitability.

SPEL provides full turnkey solutions that include Wafer sort, Assembly, Test and Drop-shipment services which help Customers accelerate time-to-revenue for their new products. SPEL also offers value added services such as package design, failure analysis and full reliability test, test program development & product characterization.

SPEL initially supplied to the domestic market. SPEL soon acquired the expertise to serve the global market. SPELas Customers are some of the biggest Integrated Device Manufacturers (IDMs) and Fabless Companies in the United States and Asia. SPEL offers Packaging Technology for Semiconductors used in diverse end-market applications including communications, consumer electronics and computing.

Quality at SPEL is the means to customer satisfaction. This is achieved by thoroughly understanding and satisfying the needs of its customers in every product or service they offer. Quality is built into the design, selection and management of products & services to deliver the required performance at the least possible cost. Quality control at SPEL is a process of maintaining standards and not creating them. Deming’s PDCA cycle is the role model followed for all activities relating to quality control and quality improvement.

Natronix is a member of the Valingro Group. The Valingro Group has diversified business interests with a Vision of Building Businesses that Transcend time.

Singapore group NATRONIX is a promoter group holding 58.09% of 40cr paid up equity capital. Company posted 26cr sales with 0.54cr net profit in latest half year results.

Key Points:

  • SPEL Semiconductor Limited is Indiaas first & only Semiconductor IC Assembly & Test facility.
  • SPEL pioneered the Outsourced Semiconductor Assembly & Test Services (OSAT) market in India.
  • It’s Parent company is Natronix Semiconductor Technology, a Singapore Headquartered Co.
  • Natronix holds over 55% stake in SPEL.
  • In simple terms, OSAT means a contract manufacturing partner which manufactures integrated circuits (ICs), tests and delivers to varied customers from different fields like Communication, Consumer Electronics and Computing.
  • The ‘Make in India’ campaign of Govt. calls for indigenous manufacture of Mobiles and other Consumer Electronics items, there by reducing overdependance on Chinesen products.
  • SPEL being the only OSAT fascility in India, stands poised to get the first mover advantage.
  • Company’s Operating Profit Margin has grown over 20% in last quarter and the company is slowly gaining momentum and turning around.
  • DIGITAL INDIA strategy also complements the company growth.
  • SPEL management is quite decent, stable and experienced. The track record of the management is Clean.
  • The ultra advanced assy. line is at Maraimalai Nagar near Chennai.
  • The customers of the company are some of the very Big names of Silicon valley.
  • The company is listed on BSE and is trading at Rs.16 per share.
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This is a part of the infamous SPIC group who have wilfully defaulted on several bank loans and driven a lot of FI’s to the ground in tamil nadu. Ask any banker in TN and they will tell you horror stories of a saga of racing horses, bungalows for promoters and fancy cars and bankers losing their shirt on SPIC.

I would’nt touch such a stock - do look at promoter credentials too.

Thanks

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madam u first read report now promoter of spel semi has been changed new promoter is singapore based natronix group

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I would not lay too much store by the new promoter. The only current investment and involvement of the promoters in this business seems to be SPEL. We really do not have any idea about the promoter’s past success or background, given that their past businesses seem to have been corporate PR and such other fluffy and intagible things.

At the end, this is a really small company with really small profits. Maybe you are right, and the new promoters will turn it around. As an ordinary investor, I think one is better off not relying on hope, but to wait and see some actual success in running the show for a couple of years. Maybe you won’t have a 100 bagger, but you will still have a 10 bagger, by not investing currently and waiting it out. But for sure, you will not have a loss of capital, which I think is very likely under the current circumstances.

Also, before certifying the current management as “quite” decent, clean and stable and experienced, maybe you should tell us why you think so.

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the stock doesn’t seem to be quoting cheap. only the promoters has changed mgmt has same.

the investment rationale i believe is that new promoters will turn it around. how can we be so sure.

tried to check the past record of promoters natronix. not much available on their website and most of it related with recent acquired company SPEL.

could not find any comforting evidence / indicator to show that the promoters have the ability to turn it around and whether they are ethical.