1. At a Glance – Blink and You’ll Miss the Turnaround
ASM Technologies Ltd is one of those companies that went from “ignored IT smallcap” to “why is this trading at 70x earnings?” in record time. Market cap currently sits around ₹4,357 Cr, the stock price is hovering near ₹2,987, and the last one-year return is a casual +144%, because why not.
FY25 sales came in at ₹508 Cr, PAT at ₹61 Cr, and operating margins expanded to nearly 20%, up from a tragic ~4% last year. Q3 FY26 revenue clocked ₹116 Cr with PAT of ₹11 Cr, YoY growth numbers looking like they were typed with Caps Lock permanently ON. ROCE stands at 19.3%, ROE at 16.8%, debt is modest at ₹53 Cr, and promoters still hold ~58%.
But here’s the twist: despite all this, the stock trades at P/E of ~71x and EV/EBITDA of ~41x. That’s not “cheap turnaround”; that’s “market pricing in flawless execution, zero hiccups, and divine intervention”.
So the real question: is ASM quietly building India’s semiconductor-engineering powerhouse, or is the stock already living in FY30?
2. Introduction – From Nobody’s Favourite to Market Darling
ASM Technologies has existed since the days when “engineering services” meant CAD drawings and bodyshopping. For years, it lived a boring, low-margin life. Revenues were stagnant, margins were thin, and investors treated it like that WhatsApp group nobody checks.
Then suddenly, everything changed.
Between FY24 and FY25, revenues jumped, margins exploded, profits went vertical, and ASM started throwing around words like Design-Led Manufacturing, Semiconductor Equipment, Industry 4.0, and Cybersecurity. Add a couple of acquisitions, government MoUs worth ₹760 Cr, and voilà — ASM became a “strategic India manufacturing story”.
But history matters. This company has seen loss years, negative operating margins, and erratic cash flows. The turnaround is real, but it’s also fresh. Investors today aren’t buying legacy ASM; they’re buying future ASM — fabs, DLM, smart manufacturing, and export-led engineering services.
Which is fine. Just remember: future stories come with future-level risks.
3. Business Model – WTF Do They Even Do?
ASM wears many hats, sometimes all at once.
At its core, the company provides Engineering Services and Product R&D
, serving industries like semiconductors, automotive, aerospace, medical devices, hi-tech electronics, and enterprise networking.
But that’s just the base layer.
On top of that, ASM has aggressively pushed into Design-Led Manufacturing (DLM) — meaning they don’t just design products, they also manufacture complex sub-systems, especially for semiconductor and industrial equipment.
Then comes the venture arm, ASM Ventures, which invests in startups across cybersecurity, networking, IoT, smart manufacturing, and AI. Some of these aren’t even profitable yet, but they give ASM optionality and buzzword ammunition.
Geographically, the company operates across India, the US, UK, Singapore, Japan, Mexico, and Canada, with offshore development centers and manufacturing facilities in India.
In simple words:
ASM wants to be the guy who designs your semiconductor machine, builds its sub-assemblies, embeds software into it, and maybe even monitors it via IoT.
Ambitious? Yes. Confusing? Also yes.
4. Financials Overview – Numbers That Finally Behave
Quarterly Performance Snapshot (₹ Cr)
| Metric | Latest Qtr (Q3 FY26) | YoY Qtr | Prev Qtr | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 116.0 | 64.7 | 154.5 | 79% | -25% |
| EBITDA | 19.5 | 11.9 | 30.4 | 64% | -36% |
| PAT | 9.3 | 5.2 | 19.1 | 79% | -51% |
| EPS (₹) | 6.38 | 4.41 | 13.11 | 45% | -51% |
Yes, QoQ looks ugly — because Q2 was unusually strong. That’s why you don’t annualise one good quarter and call it destiny.
Annualised EPS (Q3 rule): Average of Q1, Q2, Q3 EPS × 4
But since volatility is high, the TTM EPS of ₹44.4 is the cleaner number — and the market is clearly using that.
Margins are the real story. OPM improved from ~4% in FY24 to ~20% in FY25 due to scale, better fixed-cost
