MIC Electronics locked in 5% upper circuit on CCA nod for railway systems

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Shares of MIC Electronics were locked in a 5 per cent upper circuit at Rs 86.76 a piece on the BSE in Tuesday’s intraday trade. MIC Electronics share price moved up after the company announced that it has received approval for the Capacity cum Capability Assessment (CCA) for the GPS Location-based Public Address & Passenger Information System (PAPIS) and LED Destination Boards for AC and Non-AC ICF and LHB Coaches.

 

Indian Railways utilises two types of passenger coaches across various routes in the country: ICF (Integral Coach Factory) and LHB (Linke-Hofmann-Busch). These coach types differ significantly in terms of manufacturing technology, comfort, seating capacity, speed, and safety. Over the last two decades, both have been integral to the railway network, with each serving distinct purposes and operational requirements.

 

Financially, MIC Electronics’s standalone revenue from operations for the second quarter of the financial year 2024-25 (Q2FY25) stood at Rs. 11.20 crore, reflecting a 57.75 per cent growth compared to Rs. 7.10 crore in the corresponding quarter of the previous year. 

 

However, the quarterly net profit declined sharply by 74.63 per cent to Rs. 2.11 crore, down from Rs. 8.30 crore in September 2023. On the other hand, Ebitda improved, reaching Rs. 3.85 crore, a 55.24 per cent increase from Rs. 2.48 crore in the same period last year.

 

Meanwhile, on the equities side, MIC Electronics stock has outperformed the market, as in the last six months it has gained 28 per cent, while rising 154 per cent in the last one year. In comparison BSE Sensex has risen 1.6 per cent in the last six months and 10 per cent in a year. 

 

The company has a total market capitalisation of Rs 2,091.02 crore. Its shares are trading at a price to earnings multiple of 37.08 times and at an earning per share of Rs 2.34. 

 

MIC Electronics Limited (MICEL) is an Indian company specializing in the design, development, and manufacturing of LED video displays, high-end electronic and telecommunication equipment, and telecom software. The company offers a range of products, including LED lighting, LED displays, oxygen concentrators, and batteries. MICEL's LED displays serve various applications, such as sports stadiums, transportation hubs, digital theaters, theme parks, advertisements, and public information systems.