MIC Electronics surges 5%, hits upper circuit on BSE on CCA approval for GPS-based systems for Indian railways

Shares of MIC Electronics, a small-cap stock, surged by 5% on Tuesday, December 24, to ₹86.76 apiece on the BSE, hitting the upper circuit on the exchange. On the NSE, the shares are trading 4.9% up at ₹86.68 per share. The stock opened higher on the back of strong investor demand and a positive outlook for the company.

The stock was locked in an upper circuit on the BSE, reaching the maximum increase allowed for the day by climbing 5%. The company announced on December 23 that it has received the 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 from the competent authority. Indian Railways have ICF (Integral Coach Factory) and LHB (Linke-Hofmann-Busch) coaches which are essential for the railway network in India.

Financials and stock performance

The company reported a 74.63% decline in its net profit for the July-September quarter of the current fiscal year (Q2 FY25) to ₹2.11 crore from ₹8.3 crore in the previous fiscal. Its revenue from operations increased by 57.75% to ₹11.2 crore from ₹7.1 crore in the year-ago period. The EBITDA of the company increased to ₹3.85 crore, marking a 55.24% increase from the previous year’s figure of ₹2.48 crore. MIC Electronics’ market capitalisation stands at ₹2,088.37 crore as per the NSE data.

The MIC Electronics scrip has given stellar returns to customers, jumping 28% in the last six months and 155% in 2024 so far. The shares are currently trading 4.4% up at ₹86.19 apiece on the NSE.

About the company

MIC Electronics is known for designing, developing, and manufacturing light-emitting diode (LED) video displays and other products, including high-end electronic and telecommunication equipment. It offers a diverse range of products like LED displays, oxygen concentrators and batteries, among others. The company’s products are used in transportation, theme parks, theatres, stadiums, etc.