Smallcap stock below ₹100: Multibagger stock jumps nearly 5% after this acquisition update

Shares of MIC Electronics surged nearly 5 per cent in intra-day trading on Monday, November 11 after the company announced the incorporation of its wholly-owned subsidiary, MICK Digital India Limited, on November 8, 2024. The company subscribed to 50,000 equity shares at ₹10 each, totalling ₹5 lakh, with the full amount paid in cash.

MIC Electronics informed stock exchanges that its wholly-owned subsidiary, MICK Digital India, is engaged in a wide range of activities, including manufacturing, importing, exporting, and servicing smart and digital meters, RMPUs, IPS systems, computer hardware, and peripherals. It also deals in power supplies, stabilisers, audio-visual communications equipment, medical and electronic instruments, circuit components, and related products. Additionally, the subsidiary focuses on software development, IT services, and consultancy, and participates in e-mobility, energy storage, battery technology, renewable energy systems, electric vehicle components, power management solutions, and public charging networks.

Order Wins

Earlier this month, MIC Electronics Corporation's Board of Directors outlined plans to expand its capital base by acquiring companies within related sectors, aligning with its strategic growth objectives. This move aims to enhance the company's market reach, integrate new technologies, and strengthen its presence across various industries.

The company has seen a boost in its standing within the display technology sector, underscored by recent contract wins from the Indian Railways. MIC Electronics secured a tender worth ₹1.22 crore from the Malda Division of the Eastern Railway Zone for the installation of Customer Information Boards (CIB) at Abhaipur Station's Platforms 1, 2, and 3, with a six-month completion timeline post-acceptance. Additionally, it received an order valued at ₹3.05 crore from the Firozpur Division of the Northern Railway Zone for supplying coach guidance display boards to major stations within the division.

Earnings Snapshot

In the June quarter (Q1 FY25), MIC Electronics reported a 53 per cent jump in net sales to ₹10.71 crore, with the net profit rising 59 per cent YoY to ₹1.97 crore. For FY24, standalone net sales soared by 826.3 per cent to ₹54.58 crore, while net profit surged an extraordinary 41,967.3 per cent to ₹61.84 crore compared to FY23. The annualised consolidated figures for FY24 showed net sales at ₹22.91 crore with a net profit of approximately ₹0.26 crore.

The company's board will meet to approve the September quarter results on November 12.

Stock Performance

The smallcap stock rose as much as 4.6 per cent to its day's high of ₹95. Currently, it stands about 17 per cent below its 52-week high of ₹114.74 recorded in September but has skyrocketed 195 per cent from its 52-week low of ₹31.95 in December last year.

The scrip has also given multibagger returns in the last one year as well as in 2024 YTD, rallying over 132 per cent and 181 per cent, respectively.

Founded in 1988, MIC Electronics is a pioneer in producing LED graphic displays, LED lighting, telecom equipment, software, and medical devices like oxygen concentrators. Though based in India, the company has a global presence, including in the USA, Australia, and the UK.