Multibagger stock: MosChip Technologies share price jumps 115% in one month. More steam left?

Multibagger stock: MosChip Technologies' share price has experienced a remarkable surge over the past month. This IT stock has catapulted from approximately ₹136 to ₹295 per share, delivering a staggering 115 percent return to its positional shareholders. This dramatic increase in MosChip Technologies share price can be attributed to the company's receipt of a subsidy under the semiconductor design linked incentive (DLI) scheme from the government of India, as well as the acquisition of substantial work orders. Market experts predict that the stock's bullish trend will continue, potentially reaching ₹330 and ₹350 if it remains above ₹270 for the next few sessions.

Why MosChip Technologies share price is surging?

Reiterating the positive factors that have fueled MosChip Technologies' share price, Avinash Gorakshkar, Head of Research at Profitmart Securities, said, "The IT stock has been appreciating after receiving the approval from the Ministry of Electronics and Information Technology, Government of India (GoI) for a subsidy under the DLI Scheme. This is a significant boost for the small Indian IT company, enabling it to compete in the global semiconductor market. Additionally, the IT company has recently received some big work orders, further bolstering the stock's appreciation."

MosChip Technologies share price target

With the MosChip Technologies share price showing a promising upward trend, Sumeet Bagadia, Executive Director at Choice Broking, shares an optimistic view. He states, “The stock's chart pattern continues to display positive signs.It has the potential to reach ₹330 and ₹350 per share, provided it maintains a position above ₹270 in the coming sessions. For our existing shareholders, we advise retaining the stock, setting a stop loss at ₹470 per share, to capitalize on these potential gains.”

For potential investors, Sumeet Bagadia offers a strategic approach, advising, "For those with a higher risk tolerance, it may be advantageous to purchase and hold the stock with the aim of reaching the ₹330 and ₹350 targets, respectively. However, it is crucial to maintain a stop loss at ₹270 when initiating any new position. This strategy balances the potential for high returns with the need for risk management."

Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.