Shares of this multibagger semiconductor stock under Rs 50 hit its 5 percent upper circuit on Tuesday after successfully receiving an order from “Eastern Railway” worth Rs 1.47 crores. In the past month, the company’s stock has gained nearly 22 percent for its holders.
With a market capitalization of Rs 1,092.84 crores, the stocks of MIC Electronics Limited started their trading session on Tuesday at Rs 49.20 and currently are locked in the 5 percent upper circuit recorded at Rs 49.35 compared to the previous close of Rs 47 apiece.
Such sharp share price movements were observed today after the company, through a recent regulatory filing with the Bombay Stock Exchange (BSE), intimated about the receipt of a Letter of Acceptance (LoA) from Eastern Railway worth Rs 1.47 crores on Tuesday, 14th May 2024.
The LoA pertains to the replacement of ‘CIB’ & ‘TIB’, aiding for specific details, viz, train no., name, departure time, position of coaches according to classes, etc of Platform No. 1, 4, and 5 and other passenger amenities at Bhagalpur Station of the Malda Division.
The abovementioned order is a ‘Direct’ order, i.e., the company participated through Tenders, and the same is decided to be executed within one year from the date of issue of LoA.
During the recent financial quarters, the company’s basic business parameters, viz, its operating revenues as well as after-tax profits, reported some positive movements with the former increasing from Rs 8.26 crores during Q1FY24 to Rs 10.31 crores during Q2FY24 and the latter, during the same period, rising from Rs 1.24 crores to Rs 8.80 crores.
Keeping a purview of the last year, the company’s stock has proven to deliver multibagger returns of approximately 190 percent to its stakeholders, i.e., if someone invested Rs 1 lakh into the company’s stock a year ago, it would have converted to Rs 2.90 lakhs.
Founded in 1988, MIC Electronics Limited is engaged in designing, developing, and manufacturing LED video displays, high-end electronic & telecommunication equipment, and development of telecom software. Deriving revenue from operations within India, the company’s operating segments include LED products, medical appliances, and automobiles. The company is in line with the expansion of the semiconductor manufacturing sector in India.
Written by Amit Madnani
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
