15,675 Per Cent Returns: Multibagger Railway Stock Under Rs 100 Hit Upper Circuit on December 24; Here’s Why
The stock gave multibagger returns of 155 per cent in 1 year, 370 per cent in 3 years and a whopping 15,675 per cent in 5 years.
Today on BSE, the shares of MIC Electronics Ltd hit a 5 per cent upper circuit to an intraday high of Rs 86.79 per share from its previous closing of Rs 82.63 per share. The stock’s 52-week high is Rs 114.74 while its 52-week low is Rs 33.10. The shares of the company saw a spurt in volume by more than 5 times.
MIC Electronics Limited has announced that it has received approval from the Competent Authority for its capacity cum capability assessment (CCA) for the supply of GPS Location-based Public Address & Passenger Information Systems (PAPIS) and LED Destination Boards for Indian Railways coaches. This approval, for item ID 2400064, aligns with the specifications outlined in RDSO/CG-18001 (Rev.2) and follows the company's previous announcement regarding its registration request (ID 24384) submitted on July 7, 2024. This development signifies MIC Electronics' eligibility to participate in the procurement process for these railway components.
Earlier, MIC Electronics Limited achieved significant milestones. Firstly, the company has secured a substantial Rs. 1,21,90,343.51 contract from the Malda Division of the Eastern Railway Zone for providing CIB services at PF 1, 2, and 3 of Abhaipur station. This direct order is expected to be completed within six months. Secondly, MIC Electronics Limited has strategically incorporated its wholly-owned subsidiary, MICK Digital India Limited, with an authorized capital of Rs. 10 lakh and a paid-up capital of Rs. 5 lakh. This subsidiary will focus on diverse business ventures, including the manufacturing, sale, and servicing of smart meters, digital meters, electronic components, and renewable energy solutions.
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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.
According to Quarterly Results, the net sales increased by 5 per cent to Rs 11.20 crore and net profit increased by 7 per cent to Rs 2.11 crore in Q2FY25 compared to Q1FY25. Looking at the consolidated annual results, the company reported net sales of Rs 22.91 crore and net profit of Rs 0.26 crore in FY24. Looking at its half-yearly results, the net sales increased by 313 per cent to Rs 18.57 crore in H1FY25 compared to H1FY24 while the company reported a turnaround net profit of Rs 10.05 crore in H1FY25 compared to a net loss of Rs 1.25 crore in H1FY24, an increase of 704 per cent.
MIC Electronics has a market cap of over Rs 2,000 crore and has delivered good profit growth of 32.1 per cent CAGR over the last 5 years with an ROE of 60 per cent. The stock gave multibagger returns of 155 per cent in 1 year, 370 per cent in 3 years and a whopping 15,675 per cent in 5 years. Investors should keep an eye on this Small-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.