This SME consumer electronics stock zoomed 1078% against its issue price

Shares of CWD hit a new high of Rs 2,121, up 5 per cent on the BSE and zoomed over 1,000 per cent against its issue price of Rs 180 per share.

Shares of CWD climbed 5 per cent to hit a new high of Rs 2,121 in Friday’s intra-day trade, in an otherwise weak market. The stock of consumer electronics company zoomed 1,078 per cent against its issue price of Rs 180 per share.

The company had made a stock market debut on October 13, 2021. It surpassed its previous high of Rs 2,040, which it had touched on September 7, 2022.

CWD trades in the SME segment under the "MS" group on the BSE. The BSE SME scrips are listed under the "M" group (trading and clearing & settlement is done on a net basis) and under "MT" group (trading and clearing & settlement done on gross basis).

CWD stands for Connected Wireless Devices, which is an Information and Communication Technology (ICT) based company that designs, develops, manufactures, and sells integrated solutions combining the power of software and electronics. All products that are designed and developed in the company are focused on wireless technologies, either on short range radio technology like NFC, Bluetooth BLE, WiFi, Zigbee and mid range systems like LORA or long-range communication systems like 5G LTE, NB-IOT, LTE CAT M1 etc.

CWD operates mainly through segments of consumer electronics and design and development of technology solutions for various enterprises and businesses.

The company’s diversified product portfolio include smart medical consumer electronics, products for vaccine tracking and delivery, tracking devices for farm Cattle that monitor both movement and health, electronics for converting electric power meter into a smart power meter, among many others.

As India was positioned the second-largest mobile manufacturer across the globe due to the spike in internet penetration, a subsantial spike in demand for electronics was observed in the last few years too.

The Indian government attributes high priority to electronics hardware manufacturing, as it is one of the crucial pillars of 'Make in India', 'Digital India' and 'Start-up India' programmes.

"The Electronics System Design & Manufacturing (ESDM) sector plays a vital role in the government's goal of generating $1 trillion of economic value from the digital economy by 2025. With various government initiatives aiming to boost domestic manufacturing, India has already started witnessing initial movement with increased production and assembly activities across products such as mobile phones and other consumer electronics," the company said.

Meanwhile, CWD has low outstanding equity shares of 3.61 million as on March 31, 2022. The promoters held 72.29 per cent stake in the company. The remaining 27.71 per cent holding are with the individual shareholders (14.40 per cent) and institutional investors (13.31 per cent), data shows. Among individual investors, Popatlal Tarachand Jain & his family hold a combined 7.76 per cent stake in CWD.