Synopsis: MIC Electronics jumped sharply after it entered into an MOU with M/s. Chipex Technologies Private Limited to jointly develop custom semiconductor solutions aligned with MIC’s product roadmap.
This small-cap Semiconductor stock, engaged in the design, development, manufacturing, and sale of LED video displays, electronic products, telecom equipment, oxygen concentrators, and LED lighting solutions, is in focus after signing a critical MoU that strengthens its foothold in the semiconductor race.
With a market capitalization of Rs 1,374 crore, the shares of MIC Electronics Ltd reached a day’s high of Rs 58.74 per share, up 7 percent from its previous day’s closing price of Rs 55.01 per share. Over the past five years, the stock has delivered a multibagger return of 5,918 percent, outperforming NIFTY 50’s return of only 122 percent.
About the Announcement
MIC Electronics, through a stock exchange filing, announced that it has entered into a Memorandum of Understanding (MoU) with Chipex Technologies Private Limited to co-develop tailor-made semiconductor chips that match MIC’s product roadmap.
As per the agreement, MIC (the OEM partner) and Chipex (the chip development partner) will jointly conceptualise and fabricate silicon-based solutions that enhance product performance, energy efficiency, and supply stability. This partnership intends to lessen the reliance on standard parts and position MIC to secure sustainable competitiveness by internal chip innovation.
Financial Highlights
The company has reported a total revenue from operations of Rs 37.89 crore in Q2 FY26, representing a 38 percent growth compared to Rs 27.46 crore in Q2 FY25. Regarding its profitability, it reported a net profit of Rs 2.17 crore in Q2 FY26, a mere growth of 2 percent as compared to Rs 2.13 crore in Q2 FY25.
The stock has delivered a poor ROE and ROCE of 5.57 percent and 8.71 percent respectively, and is currently trading at a very high P/E of 143.41x as compared to its industry average of 40.46x.
MIC Electronics Limited is in the business of designing, developing, and manufacturing LED video displays and electronic equipment. The Company provides indoor and outdoor LED lights, solar lights, portable lanterns, and a variety of display options, including video walls, billboards, passenger information, and trailer/truck displays. It is also actively involved in the semiconductor packaging and testing industry, which will help it during India’s semiconductor industry boom.
Written by Satyajeet Mukherjee
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. Trade Brains Technologies Private Limited 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.
