The shares of MIC Electronics Ltd locked at the 5 percent upper circuit and reached an intraday high of Rs 20.55 on Tuesday’s session. The company has a market capitalization of Rs 455 crores. Substantial movement in the stock price was noticed after the company received a project from Indian railways.
As per the exchange filing, The company received an order from the Nagpur Railway Division of the Central Railway Zone to supply, install, test, and commission telecom assets/passenger amenities at 7 Nagpur Division stations under the Amrit Bharath Scheme. The work order is worth Rs 8.37 crore and will be completed in 9 months from the date of the LOA.
The stock gained 36.09 percent in the last six months from Rs 15.10 to current levels, and year-to-date basis stock gained 58.08 percent from Rs 13 to current levels.
MIC Electronics Limited (MIC) the company is engaged in manufacturing light-emitting diodes (LED) and graphic displays. The company also provides element management system (EMS) and network management System (NMS) solutions for the telecom, railway, and network domains.
According to the company’s financials, Net profit increased by 164 percent from a loss of Rs 0.92 crore to a profit of Rs 2.43 crore from Q3 to Q4. Further, income from operations increased by 65 percent to Rs 11.73 crore from Rs 7.12 crore in the previous quarter.
The year-on-year financial comparison shows that revenues decreased greatly from Rs 46.25 crore in FY 21-22 to Rs 24.85 crore in FY 22-23. Similarly, net profit fell from Rs 2.96 crore to Rs 0.25 crore.
As per the shareholding pattern, promoters of the company hold a 74.63 percent stake, and retail investors hold a 25.37 percent stake in the company for FY 22-23.
The company belongs to the category of penny stocks. We advise individual investors to conduct in-depth research before purchasing high-return penny stocks since their performance is inconsistent, they are illiquid, and only a small number of trades can result in a circuit limit. and therefore involve a significant level of risk for individual investors.
Written by Omkar C
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