Semiconductor stock jumps 9% after securing orders from Vijayavada Railway Division 

Synopsis:
MIC electronics jumped sharply after securing IP based orders worth Rs 1.49 crores  from Vijayavada Railway Division, Andhra Pradesh.

This small cap stock engaged in manufacturing electric components such as LED video display and lightning solutions whose products are widely used in sectors  such as railways, airports, sports, and advertising, jumped upto 9 percent in the day’s trade upon receiving new work order.

With the market capitalization of 1136 crore, the share of MIC Electronics has reached an intraday high of Rs. 48.89 per equity share, rising nearly 9 percent from previous day close price  Rs. 44.68. 

What is the News

MIC Electronics has received a work order from the ANV and YLM railways station which falls under the Vijayavada Railway Division, Andhra Pradesh. Under this project the company will manufacture the IP-Based Integrated Passenger Information System, which typically includes Railway Passenger Information Systems, LED display  boards, Public announcement systems etc. The domestic order is worth Rs. 1.49 crores and given a time period of 12 months to complete the project from the date of agreement.

Company Overview & Financial Highlights

MIC Electronics started as an electronic display system in the year 1988 and is now one of the leading players in designing & manufacturing LED displays. It has also made its presence in graphics & text display, railway signalling etc whose products are widely used in sectors such as railways, airport, sports and advertising etc. The Company’s head quarters is located in Hyderabad and also has its offices in Australia, USA and Dubai.

The company has recently signed MoU with M/s. Chipex Technologies Private Limited to enhance product diversification, improve system performance & energy efficiency, and long term supply stability by using co-developed custom silicon ensuring sustainability and competitiveness in global markets.

Year-on-Year analysis: MIC Electronics revenue has shot up significantly from Rs. 27.46 crores  to Rs. 37.89 crores up 37.9 percent, operating profit increased by 4 percentage, from Rs. 3.64 crores  to Rs. 3.81 crores and Net profit increased by 2.8 percentage from 2.13 crores  to Rs, 2.19 crores 

Quarter-on-Quarter analysis: MIC Electronics revenue has shot up significantly on a quarterly basis from 11.61 to 37.89, up by 226 percentage, operating profit down by 30 percentage from Rs. 4.11 crores to Rs. 3.81 crores and net profit up by 30 percentage from Rs. 1.67 crores to 2.17 crores. 

Written by-Vachan Kadli

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