Multibagger Railway Stock Under Rs 80 With High ROE; Company Receives Emergency Lighting System (ELS) Registration Approval
The stock gave multibagger returns of 135 per cent in 1 year, 560 per cent in 2 years and a whopping 16,000 per cent in 5 years.
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.
MIC Electronics Limited has announced that their fresh registration request for the supply and installation of an Emergency Lighting System (ELS) has been approved. The approval comes from the Competent Authority at Rail Coach Factory, Kapurthala, for EOG Type LHB AC & NAC Coaches under Item ID: 2400027, against registration request ID 23647 dated 12/04/2024. This disclosure is made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Earlier, Dubai authorities approved the company's Rs 51 crore investment in its wholly-owned subsidiary, SOA Electronics Trading LLC. SOA Electronics, with a share capital of AED 22,408,000, operates in the Electrical & Electronic Appliances Spare Parts Trading industry. This related party transaction involved MIC Electronics subscribing to 100% of SOA's paid-up share capital in cash. SOA Electronics was incorporated on May 9, 2024, and is based in Dubai. The Rs. 51 crore investment represents the cost of acquiring 22,408 shares at AED 1,000 each. Additionally, MIC Electronics obtained a Rs 1,21,90,343.51 contract for CIB services at Abhaipur station and established a new subsidiary, MICK Digital India Limited.
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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. The consolidated annual results show that 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 1,890 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. Minerva Ventures Fund holds 2.03 per cent stake in the company as of December 2024. The stock gave multibagger returns of 135 per cent in 1 year, 560 per cent in 2 years and a whopping 16,000 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.