At a Glance
Once a global LED display legend and RDSO darling, MIC Electronics is now trying to reboot itself with railway orders, digital boards, and the occasional UAE JV. After surviving near-collapse (and bankruptcy-adjacent vibes), the company is slowly growing again—but with laughably low margins and sky-high receivables.
1. 🎬 Introduction with Hook
Imagine being so cool in 2007 that SHARP Japan comes knocking for OEM orders. And then in 2018… your sales are lower than your neighborhood bakery.
That’s MIC Electronics for you—once ranked 5th globally in LED video tech, now barely profitable and somehow still hanging around railway platforms.
And just when you think it’s lights out, it switches to emergency mode and glows again.
2. 🧩 WTF Do They Even Do? (Business Model)
🔹 Core business: Design & manufacture of LED displays, railway passenger info systems (PIS), and lighting systems
🔹 Customers: Mostly Government & Indian Railways (read: slow payments + L1 tender drama)
🔹 Recent verticals:
- Integrated PIS for railways
- Emergency lighting systems
- Solar lanterns (SHARP tie-up days are over, but nostalgia sells)
- Now trying its luck with digital retail boards via UAE venture
💡 Also has a new wholly owned subsidiary: MICK Digital India Ltd. No, it’s not a tribute to Jagger.
3. 📈 Financials – Profit, Margins, Growth
| Metric | FY23 | FY24 | TTM |
|---|---|---|---|
| Revenue | ₹22.9 Cr | ₹54.6 Cr | ₹95.7 Cr |
| Net Profit | ₹0.26 Cr | ₹61.8 Cr* | ₹9.54 Cr |
| OPM (%) | 6.6% | 22.5% | 20.5% |
| ROCE (%) | 1.4% | 11.9% | 8.84% |
| ROE (%) | 0.01% | 2.79% | 5.71% |
* FY24 profit was inflated by one-time items.
🔥 3-Year Sales CAGR: 28%
📉 TTM Profit is down 83% YoY, so don’t get too excited.
4. 💸 Valuation – Is It Cheap, Meh, or Crack?
| Metric | Value |
|---|---|
| CMP | ₹52 |
| Market Cap | ₹1,258 Cr |
| P/E (TTM) | 132x |
| Book Value | ₹9.24 |
| Price / Book | 5.6x |
🧠 Fair Value Range (Assuming 15–25x normalized earnings on ₹10 Cr PAT):
₹25 – ₹42
→ So yes, it’s currently priced like it’s Kaynes Tech. But earns like… Kaynes Intern.
5. 🍿 What’s Cooking – Orders, Subsidiaries, Hope
✅ Recent Orders from Indian Railways:
- ₹1.11 Cr for electronic boards
- ₹60L for lighting units
- ₹2.54 Cr for Integrated PIS
- ₹1.33 Cr for telecom infra
- ₹86L for telecom materials
- ₹1.21 Cr from Eastern Railway
🆕 Subsidiary Formed: MICK Digital India Ltd (July 2024)
🏢 JV in UAE: Invested ₹51 Cr into SOA Electronics Trading LLC
💼 Management Shuffle: New CEO (Rakshit Mathur), new chairman (P V Ramesh), COO resigned recently
Translation? The boardroom has more activity than the P&L statement.
6. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY23 | FY24 |
|---|---|---|
| Equity Capital | ₹44.3 Cr | ₹48.2 Cr |
| Reserves | ₹18.7 Cr | ₹174.4 Cr |
| Total Borrowings | ₹16.6 Cr | ₹43.6 Cr |
| Total Assets | ₹87.4 Cr | ₹314 Cr |
🎯 Equity infusion has helped reduce past losses
⚠️ Borrowings are inching up again
📌 Reserves turned positive only in FY24 after a long zombie phase
7. 💵 Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) |
|---|---|
| FY23 | -4.61 |
| FY24 | -48.67 |
➡ Despite profit, MIC burns cash faster than Elon launches rockets.
➡ Receivables: 324 days. That’s like sending an invoice and getting paid after the next Lok Sabha elections.
8. 📊 Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROCE | 8.84% |
| ROE | 5.71% |
| OPM | 20.5% |
| Debtor Days | 324 |
| Inventory Days | ~100 |
| P/E | 132x |
| D/E | ~0.3 |
📉 ROE is improving but still weak
⚠️ Receivables are a big red flag
🎯 Margins have improved, but sustainability is a big “if”
9. 🧾 P&L Breakdown – Show Me the Money
MIC’s profits are quarterly popcorn: small, spicy, inconsistent.
Q1 FY26:
- Revenue: ₹11.6 Cr
- EBITDA: ₹4.1 Cr (margin: 35.4%)
- PAT: ₹1.67 Cr
But… last 3 quarters before this were all over the place. Volatility is the only constant.
10. 🧑🤝🧑 Peer Comparison
| Company | CMP | ROE (%) | P/E | Sales (₹ Cr) | Market Cap |
|---|---|---|---|---|---|
| Kaynes Tech | ₹6,007 | 11.0 | 137 | 2,721 | ₹40,239 Cr |
| Syrma SGS | ₹615 | 10.2 | 64 | 3,787 | ₹10,926 Cr |
| Lloyds Engg. | ₹78 | 17.7 | 105 | 846 | ₹10,842 Cr |
| MIC Electronics | ₹52 | 5.7 | 132 | 95.7 | ₹1,258 Cr |
📉 Clearly, MIC is overvalued when compared to its size, growth, and return ratios.
11. 📢 Misc – Shareholding, Promoters
| Category | Mar 2023 | Mar 2025 |
|---|---|---|
| Promoters | 74.63% | 66.48% |
| Public | 25.37% | 29.72% |
| FIIs | 0.00% | 3.80% |
📉 Promoters offloading ~8% stake
📈 Public and FIIs soaking it up
🧑🤝🧑 Retail shareholders: 1.85 lakh+ (from 60k in 2022)
Retail jaag gaya hai. Hopefully not just to bag-hold.
12. 🧑⚖️ EduInvesting Verdict™
MIC Electronics = LED ka comeback story with a flickering balance sheet.
Yes, it’s bounced from the graveyard. Yes, orders are coming in. But…
📦 Volatile execution
📉 Low cash generation
📊 Wild valuation
Fair Value Range = ₹25–₹42
(Assuming 15–25x normalized earnings of ₹10 Cr)
👉 At ₹52, the stock assumes consistency MIC hasn’t earned yet.
Still, if the UAE JV clicks and railway orders scale up, maybe… just maybe… the old MIC magic can reboot.
Until then: Proceed like a railway passenger—double check platform and mind the gap.
✍️ Written by Prashant | 📅 08 July 2025
Tags: MIC Electronics, LED Display Stocks, Railway Orders, Small Cap Turnarounds, Capital Goods Stocks, IPO Era Revival, EduInvesting Analysis, Industrial Manufacturing, RDSO Approved Stocks, PSU Suppliers
