🔍 At a glance
RRP Semiconductor Ltd has turned ₹10,000 into ₹7.3 lakh in just 1 year. That’s not a typo. But behind the glamorous “semiconductor” tag lies a confusing balance sheet, resigning CFO & MD, 279 debtor days, and the biggest red flag — promoters dumped 73% stake overnight. Is this really a chip story or just a classic microcap flip?
🏭 About the Company
- Founded: 1989
- Original Business: Dormant microcap (previously GDTAL Ltd)
- New Avatar: RRP Semiconductor Ltd, pivoting into chip design, electronics, and IT services
- Website: gdtal.com (yes, still the old URL)
- What it does (allegedly): Semiconductor and digital chip dealing
But if you blinked, you probably missed their transformation from penny stock to ‘fabless’ ambition.
👔 Key Management Changes (and Chaos)
- MD Resigned: May 30, 2025 → Became Non-Executive
- CFO Resigned: May 21, 2025
- Auditor Replaced: Same board meeting
- Shareholding Pattern:
- Jun 2023: Promoters held 74.5%
- Now (Mar 2025): Promoters hold just 1.27% ❗
- Public owns 98.72%
That’s a full 73% dumped to retail. Ring any pump-and-dump bells?
📊 Financials Snapshot (FY21–FY25)
| Year | Revenue (₹ Cr) | Net Profit (₹ Cr) | EPS (₹) | OPM % | ROE % |
|---|---|---|---|---|---|
| FY21 | 0.00 | -0.08 | -8.00 | N/A | -20.00 |
| FY22 | 0.00 | -0.07 | -7.00 | N/A | -60.87 |
| FY23 | 0.00 | -0.07 | -7.00 | N/A | N/A |
| FY24 | 0.38 | -0.02 | -2.00 | 28.95% | 104.76 |
| FY25 | 31.59 | 8.46 | 6.21 | 35.87% | 196.0% ✅ |
🚨 Suspicious? Revenue went from ₹0.38 Cr to ₹31.59 Cr in one year, then magically became profitable — just before promoters sold off.
📈 Stock Price Explosion
| Period | CAGR |
|---|---|
| 1 Year | 7325% 🚀 |
| 3 Year | ~ |
| 5 Year | ~ |
CMP = ₹1,565
LTP = ₹22.1 (52-week low)
That’s a 71x gain in 12 months. Insane, or engineered?
🧮 Forward Fair Value (FV) Estimate (Edu Model)
Assumptions:
- FY26 EPS Estimate = ₹10 (aggressive)
- P/E Range = 25–30x (assuming it’s a legit semi-tech biz)
➡️ Fair Value = ₹250 – ₹300
❗Current Price = ₹1,565
📉 Trading at 5–6x overvalued based on any sensible model
🔍 Business Model Breakdown (🤔)
- No physical assets, no CWIP, no R&D
- No mention of chips or patents or tech stack
- Sales shot up from 0.38 Cr to 31.59 Cr in FY25 — no explanation in filings
- Website still reflects old name (GDTAL)
💡 More like a business model of “Change name → Create buzz → Exit to retail.”
🧾 Balance Sheet Check
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity Capital | 0.10 | 0.10 | 14.12 ⚠️ |
| Reserves | -8.37 | -8.39 | 2.78 ✅ |
| Debt | 8.27 | 8.50 | 12.04 🔺 |
| Other Liab. | 0.01 | 0.21 | 9.92 🔺 |
| Fixed Assets | 0.00 | 0.00 | 0.00 ❌ |
| Net Worth | NEGATIVE for 10+ years until FY25 |
Suddenly in FY25, capital jumps 140x, reserves turn positive, revenue spikes 80x. All while promoter stake hits the exit.
🧨 Red Flags That Deserve a Red Carpet
- ❌ P/E = 252 → Tech valuations on no-tech earnings
- ❌ Book Value = ₹12.4 → CMP = ₹1,565 → P/B = 126x
- ❌ Debtors = 279 days → Either fake revenue or eternal credit
- ❌ No dividend, no history, no moat
- ❌ Management exits + auditor change = Audit wash rinse repeat?
- ❌ Shareholding flip → Public bought 98.7% from promoters in 12 months
- ❌ No physical assets, no R&D, no clarity on operations
📉 Cash Flow Insights
| Year | CFO (₹ Cr) | CFI | CFF | Net Cash Flow |
|---|---|---|---|---|
| FY24 | -0.22 | 0.00 | 0.24 | 0.02 |
| FY25 | -17.59 | -1.19 | 20.27 | 1.48 ✅ |
Negative cash from operations. Business is not funding itself, capital raising is.
🧠 EduInvesting Take
“RRP Semiconductor sounds like the name of a Taiwanese chip giant. Instead, it’s a BSE-listed reincarnation of a dead microcap that turned ₹0 into ₹30 Cr sales in one year — right before its founders ghosted. The only chip here is the one retail investors will carry on their shoulder when the bubble bursts.”
⚠️ Final Verdict: Pumped or Potential?
- Yes, the rally happened.
- Yes, the profit appeared.
- But everything changed overnight — ownership, earnings, identity.
Unless FY26 delivers audited tech contracts and proven chip capabilities, this smells more like a shell play than a semiconductor success.
🧯 Risks & Red Flags
- Regulatory inquiry if price movement + stake dump triggers SEBI alarm
- Liquidity trap — extremely high price but barely traded
- Potential delisting/merger or reverse flip game
- Auditor change and CFO exit after sudden profits = classic pattern
📦 TL;DR
- Stock zoomed 7325% in 1 year
- Revenue jumped from ₹0.38 Cr to ₹31.59 Cr
- Promoters reduced stake from 74% to 1%
- P/E = 252, P/B = 126
- Fair Value = ₹250–₹300, CMP = ₹1,565
- EduInvesting Rating: Red Alert 🔴
Author: Prashant Marathe
Date: 12 June 2025
Tags: RRP Semiconductor, Microcap Rally, Promoter Exit, Shell Company, 5-Year Recap, Chip Scam, EduInvesting, Valuation Red Flags
