MIC Electronics Gets Emergency Lighting System (ELS) Nod For Indian Railways

On Tuesday, shares of electronic product manufacturing company MIC Electronics Ltd jumped around 10 per cent to an intraday high of Rs 59.34 per share from its previous closing of Rs 53.95 per share. The stock's 52-week high is Rs 114.79, and its 52-week low is Rs 39. The company has a market cap of over Rs 1,430 crore with multibagger returns of around 230 per cent in 5 years.

Following the approval of the supply and installation of Emergency Lighting System (ELS) for EOG Type LHB AC & NAC Coaches for Indian Railways by the Competent Authority (Rail Coach Factory, Kapurthala), MIC Electronics, a small capital goods firm, is the focus of attention today.

MIC Electronics Limited recently marked a key achievement with regard to its global vision after the Dubai-based wholly owned subsidiary company, SOA Electronics Trading LLC, a fully owned firm, investment in the amount of Rs 51 crore was approved. This investment which constitutes the total subscription made to the Paid Up Share Capital of SOA Electronics was permitted after meeting all the requirements of the Dubai authorities.

SOA Electronics Trading LLC was incorporated on 9th May 2024 and it deals with Electrical & Electronic appliances spare parts trading. She has share capital made up of 22,408,000 AED comprising 22,408 shares valued at 1000 AED each. The company is Dubai-based and is established in line with MIC's plan to strengthen its foothold in the global electronics market.

Direct Investment overseas was made in cash by MIC Electronics which was an overseas direct investment. The company disclosed that SOA Electronics is a related party but stated that the transaction was made at arm's length without other promoters or organisations of the group being involved.

This expansion is in line with MIC Electronics' larger strategy to expand and diversify the business internationally, especially in promising markets like Dubai. The company is of the view that this move will enhance its standing in the Electrical & Electronic Appliances sector.

MIC has made other notable progress with the economy as well. Competent Authority has recently approved its capacity cum capability assessment (CCA) for Microprocessor controllers for roof-mounted AC units for LHB and double-decker coaches. This approval comes in the wake of earlier approvals to supply of GPS Location-based Public Address and Passenger Information Systems (PAPIS) as well as LED Destination Boards for the Indian Railways. These achievements are in line with MIC's increasing presence in the railway sector through its established technical knowledge and manufacturing skills.
Similarly, MIC Electronics obtained a contract worth Rs 1.21 crore for CIB Services at Abhaipur station and started another completely owned subsidiary, MICK Digital India Limited, to enhance domestic growth.

MIC Electronics has performed strongly, financially speaking. The company posted a 5% increase in the net sales turnover up to Rs 11.20 crores for Q2FY25 and the net profits increased by 7% reaching Rs 2.11 Crores over Q1FY25. As consolidated figures on a year-to-year basis, the net sales of MIC stood at Rs 22.91 crore while the net profit amount was Rs 0.26 crore during FY24. The H1FY25 results from the other side depicted a sales figure of Rs 18.57 crores as against sales of just Rs 4.49 during the same time in the previous Fiscal Year indicating a 313% increase. In addition, net profits also moved to Rs 10.05 crores from a net loss of Rs 1.25 crores made in H1FY24.

MIC Electronics commenced business in 1988 as an LED display and lighting, telecom equipment and medical instruments company. With the market capitalization standing at above Rs 2000 crores, MIC has been on a profit growth path with 32.1% CAGR over five years and strong stock performance of 150% multibagger in 1 year and 11,200% multibagger in 5 years. The company has a presence in the USA, Australia, the UK, and other places.