Small-cap penny stock jumps 2% despite weak trends on Dalal Street. Here’s why | Stock Market News

Shares of Bartronics India, a small-cap penny stock, climbed over 2 percent on Thursday, February 20, defying broader market weakness. The stock gained traction after the company disclosed further details regarding its Memorandum of Understanding (MoU) with Singapore’s PTW Group to establish a semiconductor manufacturing unit in India. The company had originally announced the MoU on January 8, 2025.

Details of the MoU

As per the exchange filing, the Memorandum of Understanding (MoU) between Bartronics India and PTW Group outlines a strategic collaboration to establish a semiconductor production facility, equipment refurbishment center, and training center in India. The agreement serves as the basis for a detailed merger scheme, which will be subject to due diligence, regulatory approvals, and mutually agreed terms between the two entities.

Bartronics India clarified that PTW Group and its promoters are not affiliated with the company’s promoter group or related entities. Furthermore, the proposed transaction does not qualify as a related-party transaction, ensuring transparency in the deal.

The MoU marks PTW Group’s foray into the Indian market, aligning with the country’s vision to emerge as a global semiconductor hub. PTW Group is engaged in the design, development, production, and sales of silicon production equipment, and its entry into India is expected to bolster the nation’s semiconductor ecosystem.

According to the January 8, 2025 order, the PTW-Bartronics merger is set to drive multiple strategic initiatives. These include the establishment of semiconductor production and refurbishing facilities, the creation of new semiconductor fabrication units (fabs), and the development of specialized training programs for semiconductor manufacturing. Additionally, the partnership will enhance research and development (R&D), strengthen manufacturing capabilities, and facilitate workforce training. The collaboration is also expected to support international partnerships, furthering India’s goal of becoming a key player in the global semiconductor industry.

Stock Price Movement

Following the MoU update, Bartronics India shares rose as much as 2.3 percent to touch a day’s high of ₹16.22. Despite the recent gain, the penny stock remains 37 percent below its 52-week high of ₹25.95, recorded in February 2024. Meanwhile, it has advanced over 9 percent from its 52-week low of ₹14.80, hit earlier this week on February 18, 2025.

Over the past two years, the stock has declined more than 40 percent. In February 2025 alone, it has lost 17 percent, following a 6 percent gain in January 2025.

Financial Performance

Bartronics India reported a net loss of ₹0.33 crore in Q3FY25, widening from ₹0.06 crore in Q3FY24. Revenue for the December 2024 quarter fell 26.93 percent year-on-year, declining to ₹8.71 crore from ₹11.92 crore in the same period of the previous fiscal.

Additionally, Bartronics invested ₹1.49 crore to acquire 2,136 equity shares of Ampivo at ₹7,020 per share, securing a 6.47 percent stake in the startup. This investment aligns with Bartronics’ diversification strategy into the Emerging Digital Healthcare market. The move also supports expansion beyond fintech, reinforcing the company’s commitment to emerging business opportunities and innovative solutions offered by Ampivo.

About Bartronics India

Founded in 1990, Bartronics India specializes in IT-based services encompassing biometrics, barcoding, smart cards, and radio-frequency identification (RFID) solutions.

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