1. At a Glance – Blink and You’ll Miss the Promoter Exit
MIC Electronics Ltd is that classic Indian midcap story where Indian Railways orders meet capital market gymnastics. Market cap stands at ₹1,026 Cr, stock price at ₹42.6, while the company just reported ₹90.2 Cr quarterly revenue, a spicy 668% YoY jump, yet profits politely refused to cooperate, declining 13.4% YoY.
P/E sits at a nosebleed 110, ROCE is a sleepy 8.7%, ROE barely stretching at 5.6%, and debt is ₹45.8 Cr — not scary, but not yoga-flexible either. Promoters? Once at 75%, now down to 55.5%, thanks to QIPs, fund raises, and dilution gymnastics.
This stock screams “Railway PSU supplier with startup-level valuation confidence.” Curious? You should be.
2. Introduction – From Near-Death to Railway Resurrection
MIC Electronics is not a fresh IPO fairy tale. This company has seen losses so deep they had their own pin codes between FY18–FY21. Revenues collapsed, cash flows bled, and working capital cycles went full Bollywood tragedy.
Then suddenly — Indian Railways happened.
LED destination boards, PAPIS systems, passenger information displays, emergency lighting, smart meters — MIC positioned itself exactly where government capex likes to throw money. Revenues revived, losses reversed, and FY24–FY25 became the “comeback season”.
But here’s the problem:
Stock price celebrated like a wedding, profits arrived like a court summons.
So the real
question —
Is this a genuine railway-tech turnaround, or just another order-book fueled valuation mirage?
3. Business Model – WTF Do They Even Do?
MIC Electronics designs and manufactures:
- LED video & display systems
- Railway passenger information & announcement systems
- Embedded and telecom software
- Electronic signalling & communication equipment
Their sweet spot is Indian Railways, Metro stations, airports, PSUs, and government infrastructure. Private sector exists, but Railways pays the bills and decides the mood.
If Indian Railways sneezes, MIC catches pneumonia.
If Railways spends, MIC throws investor presentations.
Simple model. Zero glamour. Heavy dependence.
4. Financials Overview – Revenue Rocket, Margin Rickshaw
Quarterly Comparison (₹ Crore)
| Metric | Latest Qtr | YoY Qtr | Prev Qtr | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 90.23 | 11.75 | 37.89 | +668% | +138% |
| EBITDA | 3.97 | 3.45 | 3.81 | +15% | +4% |
| PAT | 1.88 | 2.17 | 2.17 | -13.4% | -13% |
| EPS (₹) | 0.08 | 0.09 | 0.09 | -11% | -11% |
Annualised EPS (Q3 rule):
Average of Q1–Q3 EPS × 4 ≈ ₹0.32
And the stock trades at ₹42.6.
Yes, that’s how you get 110x P/E.
Sales are sprinting. Profits are jogging. Valuation is on
