Minerva Ventures Fund Holds 2.03 Per Cent Stake: High ROE Multibagger Penny Stock Under Rs 80 Hit 5 Per Cent Upper Circuit On January 30
Today on BSE, the shares of MIC Electronics Ltd hit a 5 per cent per cent upper circuit to an intraday high of Rs 78.47 per share from its previous closing of Rs 74.74 per share. The stock’s 52-week high is Rs 114.74 per share while its 52-week low is Rs 34.50 per share.
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.
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Recently, MIC Electronics Limited announced that Dubai authorities have approved its Rs. 51 crore investment in its wholly-owned subsidiary, SOA Electronics Trading LLC. SOA Electronics Trading LLC, with a share capital of AED 22,408,000, operates in the Electrical & Electronic Appliances industry, specifically Electrical & Electronic Appliances Spare Parts Trading. This acquisition, a related party transaction, was conducted at arm's length, with MIC Electronics subscribing to 100% of SOA's paid-up share capital in cash. Incorporated on May 9, 2024, SOA Electronics Trading LLC is based in Dubai. The Rs. 51 crore investment represents the cost of acquiring the 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.
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 a 2.03 per cent stake in the company as of December 2024. The stock gave multibagger returns of 125 per cent in 1 year, 585 per cent in 2 years and a whopping 14,200 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.