Section 1: Company Overview and Fundamentals

1.1 Company Overview:

Marvell Technology, Inc., through its subsidiaries, is a supplier of infrastructure semiconductor solutions.   The business specializes in the design, creation, and selling of integrated circuits. Its product solutions cater to five different industries, including automotive/industrial, consumer, business networking, data centers, and carrier infrastructure. Custom application-specific integrated circuits (ASICs), electro-optics, Ethernet services, fiber channel adapters, processors, and storage controllers are among the company's product offerings.           

1.2 The Key Positives, Negatives, and Investment summary

1.3 Key Metrics:

A YoY increase in MRVL's free cash flow generation in Q3FY23 indicates greater efficiency in both revenue generation and operational expenditure control. Additionally, the firm has been effective in lowering its debt coverage ratio from 9.79x in Q4FY22 to 8.34x in Q3FY23, indicating improved profitability.

1.4 Top 10 shareholders:

The top 10 shareholders together form ~39.62% of the total shareholding, signifying diverse shareholding. Fidelity Management & Research Company LLC and The Vanguard Group, Inc. are the biggest shareholders, holding the maximum stake in the company at ~14.42% and ~7.77%, respectively.

Section 2: Business Updates and Financial Highlights

2.1 Recent Updates and Corporate Updates:

The below picture gives an overview of the recent updates:

 2.2 Insights of Q3FY23:

Section 3: Key Risks and Outlook

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

4.2 Fundamental Valuation

Valuation Methodology: Price/Earnings per share Multiple Based Relative Valuation

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is December 05, 2022. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

 Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

 Stop-loss: It is a level to protect against further losses in case of unfavorable movement in the stock prices.