Small Cap Stock Under Rs 100 Zooms 4% On Major Railway Order Win & Q2 Results

The shares of the small-cap company MIC Electronics surged to an intraday high of Rs 87.99 on Tuesday after opening on the NSE at Rs 84.48 a share. Following the release of the company's Q2 earnings, the stock was trading 3.67% higher at Rs 87.10 per share in the afternoon trades. The company's net sales for the September 2024 quarter were Rs 11.20 crore, up 57.75% from the September 2023 quarter's Rs 7.10 crore. In Q2FY25, the company's net profit was Rs. 2.11 crore, a 74.63% drop from Rs. 8.30 crore in Q2FY24. EBITDA improved 55.24% from Rs. 2.48 crore in the September 2023 quarter to Rs. 3.85 crore in Q2FY25.

Earlier this month, the Board of Directors of MIC Electronics Corporation announced a plan to increase its capital by acquiring firms in similar fields, which is in line with the firm's growth ambitions. Such a strategy aims to position the company to widen its market scope, gain access to fresh technologies, and deepen penetration into various industries.

The Company's recent contract awards to the Indian Railways indicate it is gaining more traction in the display technology sector. MIC Electronics entered into a contract with the Malda Division of the Eastern Railway Zone for the installation of Customer Information Boards (CIB) on Platforms 1, 2 & 3 of Abhaipur Station. This was a tender contract awarded at Rs 1.22 crore and was scheduled for completion six months after the Letter of Acceptance was issued.

In addition, the company won an order from the Firozpur Division of the Northern Railway Zone worth Rs 3.05 crore against the supply of coach guidance display boards to large stations that belong to the division.

In addition, the firm is pleased to inform you that the Rajkot Division of the Western Railway Zone has granted them a Letter of Completion confirming the successful installation of coach guidance display boards and the IPIS systems at Hapa station.

There are no doubts about MIC Electronics' performance since it has remained strong lately. For the 1st Quarter of FY25, NT sales of the firm leaped by 53% to Rs 10.71 crore, as net profit jumped 59% YoY to Rs 1.97 crore. For FY 24, MIC Electronics posted a standalone net sales growth of 826.3% amounting to Rs 54.58 crore during which net profit surged to Rs 61.84 crore marking growth of 41,967.3% over FY23. The consolidated annualized for FY24, net sales stood at Rs 22.91 crore and net profit approximately 0.26 crore.

The company MIC Electronics has a profitability CAGR of 32.1 percent and ROE of 61 % with a market cap of over Rs 2000 crores.

Established in 1988, MIC Electronics Ltd. produces LED Graphics Displays and LED Lighting, telecom equipment, software, and medical devices including oxygen concentrators as one of the first firms in India. The company is based in India but operates in international markets like the USA, Australia, UK and other regions.

With strategic acquisitions, an increasing number of contracts, and repeated growth in its financials, MIC Electronics has developed a profile that is set to boost its leadership position in display technology and other sectors.