Stock under Rs 100 to keep under radar as company receives approval of fresh registration for Emergency Lighting System for railway coaches from Ministry of Railways

The stock gave multibagger returns of 115 per cent in just 3 months, 285 per cent in 1 year, over 6,775 per cent in 3 years and a whopping 12,000 per cent in 5 years.

MIC Electronics Ltd has been approved by the Ministry of Railways (Government of India) to supply emergency lighting systems for specific types of railway coaches (EOG Type LHB AC & NAC). This approval comes after a successful capacity and capability assessment by the Ministry, allowing MIC Electronics to register as a supplier for this equipment (item ID: 2400027). There are currently no specific details available regarding the order size, timeline for execution, or any significant terms and conditions. Additionally, this registration process does not involve any related party transactions between MIC Electronics and the Ministry of Railways.

Earlier, the company successfully concluded its Qualified Institutional Placement (QIP) issue, which ran from June 12, 2024 to June 26, 2024. The company's Management Committee approved the allotment of 1,95,65,217 equity shares to qualified institutional buyers at a discounted price of Rs 46 per share (a premium of Rs 44 per share compared to the floor price) raising a total of Rs 89,99,99,982. Antara India Evergreen Fund Ltd., Coeus Global Opportunities Fund, and Minerva Ventures Fund were among the investors who participated in the QIP, acquiring 43,47,826 shares, 86,95,652 shares, and 65,21,739 shares respectively.

Today, the shares of MIC Electronics Ltd hit a 5 per cent upper circuit to Rs 90.73 per share from its previous closing of Rs 86.41. The stock also made a fresh new 52-week high is Rs 90.73 while its 52-week low is Rs 23. The stock has been hitting back-to-back upper circuits and 52-week highs in the recent trading sessions.  

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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 consolidated Quarterly Results, the net sales increased by 396 per cent to Rs 10.31 crore in Q4FY24 compared to Q4FY23. The company reported a turnaround net profit of Rs 8.80 crore in Q4FY24 compared to a net loss of Rs 0.01 crore in Q4FY23, an increase of 87,900 per cent. 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. 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.

MIC Electronics has a market cap of over Rs 2,000 crore with a 3-year stock price CAGR of 300 per cent. The stock gave multibagger returns of 115 per cent in just 3 months, 285 per cent in 1 year, over 6,775 per cent in 3 years and a whopping 12,000 per cent in 5 years. Investors should keep an eye on this stock.

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