Shares of MIC Electronics Ltd gained 5% on Monday’s intraday trades to hit the 5% upper circuit after it received an order from the railways. Its shares were locked at ₹ 18.11 apiece.
MIC Electronics Ltd. is a manufacturer of electric lighting equipment. It is also engaged in the manufacturing of light-emitting diode (LED) displays and LED lighting. It has three business segments: LED Products, Medical and other appliances and automobiles.
According to an exchange filing, the company has received a Letter of Acceptance (LOA) for a work order from the Mumbai Railway Division of the Western Railway zone. The aggregate value of the order is ₹ 4,62,16,707 (₹ 4.62 crores) and it is to be completed within six months from the date of issue of the LOA.
With a market capitalization of ₹ 382 crores and a share price of ₹ 18.11, MIC Electronics is a penny stock. It has a return on equity of 8.74% and an ideal debt-to-equity ratio of 0.16. Its shares were trading at a price-to-earnings ratio of 10.06 which is significantly lower than the
industry P/E of 30.01, suggesting that the stock may be undervalued as compared to its peers.
The company’s promoters hold a 74.63% stake in it, and retail investors hold the remaining 25.37% stake in the company.
MIC Electronics reported a 23.13% decline in its quarterly revenue to ₹ 11.73 crores in Q4FY23 (January to March), against ₹ 15.26 crores reported in the corresponding quarter last year (Q4FY22). However, it posted a profit of ₹ 2.43 crores in Q4FY23, against a loss of ₹ 0.98 crores in Q4FY22.
For the entire year (FY23), the company reported a revenue of 24.85 crores, down 46.27% as compared to ₹ 46.25 crores in the previous year (FY22).
Written By Simran Bafna
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