20% Upper Circuit and Low P/E: Bengaluru-based small-cap multibagger stock achieves India’s first breakthrough in silicon photonics packaging

Indian markets ended Friday’s session in the red, down 0.85 per cent, with the Nifty slipping below the 24,900 mark. Broader markets also closed lower. However, one Small-Cap stock from the broader market category defied the trend, hitting the 20 per cent upper circuit after a breakthrough announcement.

The stock in focus is Izmo Ltd., a company that provides hi-tech automotive e-retailing solutions across North America, Europe, and Asia. Izmo owns the world’s largest collection of automotive images and animations, which form the foundation for innovative marketing tools such as izmo’s virtual brochures. Its client base runs into the thousands, ranging from Fortune 10 OEMs to some of the largest automotive retail groups globally.

On Friday, Izmo’s share price surged 20 per cent and was locked at the upper circuit limit. The rally came despite overall market weakness, following a path-breaking announcement from its specialised division, izmomicro.

izmomicro announced a major milestone in silicon photonics packaging, positioning itself as a pioneer in India’s semiconductor ecosystem and enhancing the country’s standing in the global race toward next-generation data and AI infrastructure. The division has developed a high-density silicon photonics packaging platform that supports 32-channel fibre input and output, with an industry-leading insertion loss of less than 2 dB. Achieving this density requires nanometre-scale optical alignment, advanced assembly processes, and seamless integration of electronics.

The module also features 32 DC I/Os, 4 RF I/Os, and high-speed RF performance up to 70 GHz, setting a new benchmark for the integration of photonic and electronic systems. This breakthrough reflects izmomicro’s sustained investment in R&D and expertise in advanced semiconductor packaging. By addressing density and precision challenges in silicon photonics, it has overcome a critical industry bottleneck, joining a select group of companies worldwide capable of this feat.

This capability is crucial for the future of AI, cloud computing, and telecommunications, as traditional copper interconnects near their physical limits. Silicon photonics is widely seen as the enabling technology for multi-terabit optical communication. By breaking packaging constraints, izmomicro is paving the way for scalability and efficiency in hyperscale data centres, AI clusters, and next-generation 5G/6G networks.

Commenting on the achievement, the Executive Director of izmomicro said:

“Only a handful of companies worldwide have demonstrated this capability, and we are proud to be the first in India.”

The global silicon photonics market, valued at USD 2.65 billion in 2025, is projected to exceed USD 9 billion by 2030, growing at a CAGR of over 25 per cent. Much of this growth will stem from demand for faster and more energy-efficient data transmission across cloud platforms, AI workloads, and telecom networks. With its breakthrough in packaging density, izmomicro is poised to play a key role in this transformation.

The Bengaluru-based small-cap company has rewarded shareholders handsomely, delivering multibagger returns of 155.79 per cent from its 52-week low. Despite this sharp rally, the stock is still trading at a low P/E of 17.2x.

Disclaimer: The article is for informational purposes only and not investment advice.