BENGALURU/MUMBAI: RRP Semiconductor, a BSE-listed company, is suddenly distinguishing itself in the global craze for semiconductors. The company stands out as an anomaly in India’s fast-evolving semiconductor narrative-drawing intense attention not for technological breakthroughs or manufacturing scale, but for its stock price surge that has sharply defied conventional valuation logic. Little known until recently, even within its home market, RRP Semiconductor became a social media obsession as its shares rallied more than 55,000% in the 20 months till mid-Dec, which, Bloomberg reported, was the biggest gainer globally among companies with a market value of over $1 billion.
The numbers have left market watchers stunned: the stock traded at a negative price-to-earnings multiple of 6,097, while its market capitalisation-to-sales ratio climbed to an extraordinary 1,080 times. From trading at Rs 15 at the start of fiscal 2025, the stock price hit an all-time high of Rs 11,784 on Nov 3. Since then, it was on a downward spiral, hitting the BSE-imposed special 1% circuit limit on the downside, and on Thursday, it closed at Rs 11,095. The stock is thinly traded. On Oct 14 this year, the company disclosed to the bourses that they suspect some people are behind this surge in stock prices. Of the nearly 1.4 crore shares issued by the company, 99.3% are locked in till March 31, 2026, and only 4,000 shares are in the demat form, the company said. The company itself, in its Oct 14 release, stated that its financials do not justify the recent surge in its stock price. BSE data showed that in fiscal 2025, RRP Semiconductor delivered a dramatic financial turnaround. During the year, the company reported a turnover of Rs 31.6 crore, an 83-time jump over the Rs 38-lakh turnover it reported the previous year. After accounting for a total expenditure of Rs 20.4 crore, the company posted a net profit of Rs 8.5 crore, reversing a loss of Rs 1.7 lakh the previous year. The numbers have turned more curious in the current fiscal. During the April-June quarter, it reported no revenues and a net loss of Rs 29 lakh. In the Sept quarter, it reported a negative revenue of Rs 6.8 crore and a net loss of Rs 7.2 crore. However, the operating reality tells a more restrained story. Until recently, RRP Semiconductor’s business was largely confined to trading electronic components for select clients. It had no fabrication facilities, no chip manufacturing, and no advanced semiconductor design operations – core elements typically associated with companies in the semiconductor space. In FY25, the company changed its main objective, signalling an ambition to enter electronics devices and semiconductor-related businesses. At a time when India’s semiconductor ambitions are anchored in deep capital investment, long gestation cycles, and complex technological execution, RRP Semiconductor remains an outlier. The disconnect between its market valuation and its operating fundamentals has made it one of the most closely watched – and questioned – stories in the market.
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