Multibagger Stock MIC Electronics Locked In 5% Upper Circuit After Securing Order From Southern Railway Zone

On Wednesday, the shares of one of the multibagger stocks of Dalal Street MIC Electronics opened on the BSE at Rs 82.50 per share and surged to reach a 5% upper circuit limit at Rs 85.95 per share during the afternoon trade. The rally in the stock price was witnessed after the company was awarded a significant order from the Salem Division of the Southern Railway Zone on Tuesday for an amount of Rs. 1,33,08,976.53/-.

The company has received a Letter of Acceptance for the provision of telecom-based passenger amenities at three key locations: SGE, SA, and the provision of FIOSNET at ELS, Erode. The total value of this contract is Rs. 1,33,08,976.53, marking another milestone in the company's successful partnerships with Indian Railways.

This announcement comes amid a strong performance in the stock market.

This contract follows closely on the heels of another major order from the Indian Railways' Ratlam Division of the Western Railway Zone. MIC Electronics was awarded a contract for the supply, installation, testing, and commissioning of telecom materials as part of the construction of a 12-meter-wide foot overbridge under the Amrit Bharat Station Scheme (ABSS) at 14 stations across the Western Railway Zone. This project is valued at Rs 86.44 lakh and is expected to be completed within 10 months.

The company also secured an order from the Lucknow Division of the Northern Railway Zone, ahead of the Mahakumbh 2025 event. The Letter of Acceptance includes the provision of an Integrated Passenger Information System at multiple stations-PRG, PYGS, and PFM. The value of this project is Rs 2.54 crore, and it is scheduled to be completed within nine months.

MIC Electronics has been reporting robust financial growth, reflecting its success in securing strategic contracts and expanding its market presence. The company's standalone net sales for the quarter ending June 2024 stood at Rs 10.71 crore, marking a 52.63% increase compared to Rs 7.02 crore in the same quarter last year. The company's net profit for the quarter rose to Rs 1.97 crore, a 58.48% increase from Rs 1.24 crore in June 2023. Additionally, its EBITDA grew by 32.55% to reach Rs 2.81 crore, up from Rs 2.12 crore a year earlier. The company's earnings per share (EPS) increased to Rs 0.08 in June 2024 from Rs 0.06 in the previous year.

MIC Electronics Ltd., founded in 1988, is a leading manufacturer of LED displays (indoor, outdoor, mobile), lighting solutions (indoor, outdoor, solar), telecom equipment, and software. They also produce medical equipment like oxygen concentrators and batteries. Headquartered in India, MIC exports its products globally and has a presence in the USA, Australia, UK and other countries.