MIC Electronics Locked In 5% Upper Circuit After Getting Buy Call From Anand Rathi

On Thursday, shares of railway company MIC Electronics Ltd surged around 5 per cent to an intraday high of Rs 90.93 per share from its previous closing of Rs 86.60 per share. The stock's 52-week high is Rs 114.79 and its 52-week low is Rs 33. The company has a market cap of over Rs 2,170 crore with multibagger returns of around 400 per cent in 5 years. Following MIC Electronics' buy recommendation from renowned broking company Anand Rathi, the stock price saw a surge in buying activity.

Leading the way in the design, development, and production of high-end electronic and telecommunication devices as well as LED video displays is MIC Electronics. In 1988, MICEL was established in Vijayawada, Andhra Pradesh. Over the last three years, the firm has demonstrated a strong profit surge of 137%. Over the last three years, the company's revenue has grown by a respectable 268.60%. One of D-Street's multibagger stocks is MIC Electronics, which climbed 160% year-to-date so far in 2024. Jigar Shantilal Patel of Anand Rathi, however, believes that the stock has significant upside potential over a one-month period.

MIC Electronics Share Price Target

CMP: 83.2, Target: 90, Upside : 10%, Timeframe: 1 Month

"After peaking near the 115 mark in September 2024, the stock has undergone a sharp correction, dropping approximately 34 points-equivalent to a 29% decline. This substantial pullback has brought the price down to a critical technical level, where it has formed Bullish BAT pattern between S3 & S4 camarilla pivot which aligns with previous demand zone ON DAILY CHART. These technical signals suggest that the stock could witness a buildup of bullish momentum in the coming weeks. From a strategic standpoint, investors may consider buying or accumulating the stock within the 81-83 range, with a potential upside target of 90. To manage risk, it is recommended to maintain a stop-loss at 77.5 on a daily closing basis," said Jigar Shantilal Patel of Anand Rathi.

MIC Electronics Financials

Compared to the September 2023 quarter's net sales of Rs 7.10 crore, the company's September 2024 quarter net sales of Rs 11.20 crore represented a 57.75% growth. The firm made a net profit of Rs. 2.11 crore in Q2FY25, a 74.63% decrease from Rs. 8.30 crore in Q2FY24. From Rs. 2.48 crore in the September 2023 quarter to Rs. 3.85 crore in Q2FY25, EBITDA increased by 55.24%. With a market valuation of more than Rs 2000 crores, MIC Electronics has a profitability CAGR of 32.1 per cent and a ROE of 61%.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.