Mukul Agrawal Boosts Stake in ASM Technologies: 5 Key Reasons
Mukul Agarwal, a prominent investor known for his strategic stake acquisitions, has recently increased his holding in a leading semiconductor company from 6.5 percent to 10.7 percent. This move signals a strong vote of confidence in the company’s growth prospects and its positioning within the rapidly expanding semiconductor industry.
Investors and market watchers often view such stake increases by seasoned investors as an endorsement of the company’s future potential, operational strength, and long-term value creation.
ASM Technologies Ltd, with a market capitalization of Rs. 4,901 crore, closed at Rs. 3,360 per equity share, down by 1 percent from its previous day’s close price of Rs. 3,393 per equity share. The global semiconductor market is undergoing rapid growth, driven by rising demand for electronics, electric vehicles, industrial automation, and renewable energy solutions. Supply chains are shifting toward India as companies look to diversify production away from traditional hubs, creating opportunities for local manufacturers.
ASM Technologies, with its focus on high-precision, customized components and systems for semiconductors, is well-positioned to benefit from this trend. Its expertise in complex engineering, end-to-end manufacturing, and collaborations with global OEMs allow it to capture new orders, expand capacity, and become a key partner in India’s growing semiconductor ecosystem.
Ace Investor Holdings
Mukul Mahavir Agrawal increased his stake in ASM Technologies from 6.48 percent (7,62,500 shares) in June 2025 to 10.68 percent (1,500,000 shares) in September 2025. In July 2024, the ace investor made a fresh investment in the company, acquiring a 6.48 percent stake. After this increase of stake, ASM Technologies became the second-largest stock in his portfolio, worth about Rs. 541.7 crore. Overall, Agrawal holds 71 stocks, with a total net worth of over Rs. 7,455.3 crore.
About the Company
ASM Technologies is a 30-year-old engineering and design-led manufacturing company that provides end-to-end product development solutions; from concept design and engineering to precision manufacturing. The company is not into mass production; instead, it focuses on highly customized, complex, high-precision work that sets it apart in the industry. ASM operates through four manufacturing facilities in Karnataka and Tamil Nadu, along with six global development centers and ten offices worldwide, serving clients across the US, UK, Singapore, Japan, and other international markets. ASM works across two major business verticals: the Hi-Tech segment and the Engineering segment.
Hi-Tech Segment
In the Hi-Tech segment, it builds systems, subsystems, and precision parts for complex equipment used in semiconductors, consumer electronics, industrial electronics, and solar equipment. With global supply chains shifting toward India, ASM is positioned as a strong partner for OEMs looking to localize high-value manufacturing. The company has also formed a joint venture, ASM-HHV, to expand into the solar equipment space, with initial deliveries expected soon.
Engineering Segment
In the Engineering (or transportation) segment, ASM provides both ER&D (Engineering R&D) and DLM (Design-Led Manufacturing) services. It supports global OEMs in industrial vehicles, large vehicles, and off-highway mobility solutions, working with both established players and next-generation mobility companies. Across both verticals, ASM integrates industrial AI through proprietary frameworks to improve yield, performance monitoring, and predictive maintenance; strengthening efficiency and operational outcomes for customers.
Financial Outlook
ASM Technologies reported strong Q2 FY26 results with revenue of Rs. 154.46 crore, compared to Rs. 56.94 crore in Q2 FY25, showing a year-on-year growth of 171 percent, and up from Rs. 122.91 crore in Q1 FY26, a quarter-on-quarter rise of 26 percent. Profit also grew significantly to Rs. 19.12 crore, compared to Rs. 2.18 crore in Q2 FY25, a year-on-year increase of 777 percent, and Rs. 15.57 crore in Q1 FY26, a quarter-on-quarter growth of 23 percent, reflecting strong performance across its key business segments. Over the past five years, ASM Technologies has delivered a revenue CAGR of 26 percent, a profit CAGR of 105 percent, and a share price increase of 122 percent, reflecting strong growth and value creation for shareholders.
A return on equity (ROE) of about 16.8 percent, a return on capital employed (ROCE) of about 19.3 percent, and a debt to equity ratio of 0.18 demonstrate the company’s financial position. At the moment, the company’s P/E ratio is 94.9x higher as compared to its industry P/E 25.1x.
Expansion Plans
The company is investing in infrastructure, staff, and capacity to meet growing demand. It has signed agreements with Karnataka and Tamil Nadu governments to invest Rs. 510 crore and Rs. 250 crore, respectively, to expand its ER&D, DLM, and precision engineering facilities. Once ready, these new facilities will greatly increase capacity and support growth in both business areas.
Stock Return
The stock has shown outstanding growth over different periods. In the past six months, it has risen by 45.83 percent, showing strong recent performance. Over the last one year, it has surged 133.65 percent, reflecting significant gains for investors. Looking at the long term, the stock has delivered an extraordinary 4,822 percent return over five years, demonstrating its tremendous potential for wealth creation and consistent growth over time.
Conclusion
ASM Technologies has a diversified business serving multiple sectors such as semiconductors, consumer electronics, industrial electronics, solar equipment, industrial vehicles, large vehicles, and off-highway mobility solutions. With its strong position in the growing semiconductor industry, excellent financial performance, high revenue and profit growth, long-term returns, and investments in capacity and infrastructure, Mukul Agrawal likely increased his stake because he is confident in the company’s future growth and value creation.
