Multibagger penny stock at Rs 54.72: This electric equipment company announces QIP & Bags order worth Rs 3,04,95,150 from Northern Railway

The stock gave multibagger returns of 170 per cent in 1 year and over 3,500 per cent in 3 years.

MIC Electronics Limited (the Company) is issuing equity shares with a face value of Rs 2 each through qualified institutions placement (QIP). This issuance follows approval from the company's board of directors and shareholders and adheres to the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 (the "SEBI ICDR Regulations"). The Issue opened today, June 12, 2024, with a floor price of Rs 48.30 per share, determined based on the SEBI ICDR Regulations. The company may offer a discount of up to 5 per cent on this floor price, with the final price decided in consultation with the appointed Book Running Lead Manager. A detailed document outlining the placement terms (the Preliminary Placement Document) will be filed with the Stock Exchanges.

Earlier, the company received a Letter of Acceptance from the Firozpur Division of the Northern Railway Zone to provide coach guidance display boards at major stations within their division. The total value of this work order is Rs 3,04,95,150. The specific terms and conditions will be finalized when the contract is signed. This is a domestic order, directly awarded through tenders with a nine-month timeframe for completion from the date of the acceptance letter. No promoter or affiliated companies have any stake in the Firozpur Division, and this transaction is not considered a related party transaction.

On Wednesday, shares of MIC Electronics Ltd hit 5 per cent to Rs 54.72 per share from its previous closing of Rs 52.12. At the closing bell, shares of the company were trading at Rs 52.60 per share, up 0.92 per cent. The stock’s 52-week high is Rs 59.80 and its 52-week low is Rs 19.70.

MIC Electronics Ltd., founded in 1988, is a leading manufacturer of LED displays (indoor, outdoor, mobile), lighting solutions (indoor, outdoor, solar), telecom equipment, and software. They also produce medical equipment like oxygen concentrators and batteries. Headquartered in India, MIC exports its products globally and has a presence in the USA, Australia, UK, and other countries.

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According to standalone Quarterly Results, the net sales increased by 674.7 per cent to Rs 22.96 crore and net profit increased by 1,941.6 per cent to Rs 49.59 crore in Q4FY24 compared to Q4FY23. In its standalone annual results, the net sales increased by 826.3 per cent to Rs 54.58 crore and net profit increased by 41,967.3 per cent to Rs 61.84 crore in FY24 compared to FY23.

MIC Electronics has a market cap of over Rs 1,100 crore with a 3-year stock price CAGR of 230 per cent. The stock gave multibagger returns of 170 per cent in 1 year and over 3,500 per cent in 3 years. Investors should keep an eye on this stock.

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