This penny stock jumped 5%, hitting its upper circuit shortly after the first hour of markets opening on Friday after it bagged an order from Kota Railway Division of West – Central Zone.
The stock currently trades at Rs. 31.50 versus 30.01 at closing on Thursday. The company has a market cap of Rs. 698 crore and is currently trading 1% away from its 52 week high and 13%, 29% above its 20 day and 200 day moving averages respectively.
In a filing dated 6th October 2023, released shortly after markets opening, MIC Electronics Ltd (‘MIC Electronics”) stated that the Company has received Letter of Acceptance from Kota Division of West – Central Railway Zone for enhancement of passenger amenities namely; Provision of High-Level Platform at BTE, BXN, BWM stations and improvement of PF Surface at GOH, BAZ, CAG stations, Improvement to interiors, waiting halls, etc.
At 17 no stations (BTE, BXN, HAN, SMBJ, GGC, SWM, BWM, RMA, GOH, SGZ, VMA, CMU, BAZ, CAG, BUDI, MLGH, JLWC) of Kota Division and Provision of COP at 7 no stations (BXN, SMVJ, BWM, SGZ, VMA, BAZ, CAG) of Kota Division under Amrit Bharat Station Scheme in WCR Replacement of IP Based Integrated Passenger Information System at Tenali Station (TEL).
The aggregate value of the said Work-Order is Rs. 2,70,02,653.65. Further, the Company has received Letter of Completion/Installation Certificate from Bhopal Division of West – Central Railway Zone for 1) BINA: Replacement of old Coach Guidance System on PF No. 3 ,4 & 5 and other telecom amenities. 2) Provision of AT a glance Board at Biyavra Rajgarh (BRRG), Shajapur (SFY), Mungaoli (MNV), Pachor Road (PFR) stations of Bhopal division
MIC Electronics is a multibagger over YTD, 1Y and 3Y periods, returning 128%, 136% & 4685% respectively. Meaning, if you invested Rs. 1 lakh into MIC Electronics around 3 years ago, it would now be worth about Rs. 48 lakh!
The company’s growth has slowed in the previous fiscal year in terms of top line growth and profitability in the form of bottom line margins. The company’s revenue degrew 84% YoY in FY23 from Rs. 31 crore to Rs. 5 crore. Net profits during the same period degrew 29% YoY from Rs. 2.8 crore to Rs. 0.2 crore, indicating a margin contraction of approx. 645 bps.
Written by Sandeep R
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