Shares of MIC Electronics popped 20% during Thursday’s intraday trade, September 4, hitting a 12-week high of ₹61.74 apiece, providing some relief for the shareholders, as it had been under selling pressure in recent weeks.
The improved sentiment came after the GST Council on Wednesday slashed the GST rates on air conditioners and televisions to 18% from 28%. Analysts see this, along with cuts in other consumer durables, as a welcome reform that could boost demand for electronics companies.
MIC Electronics Ltd is in the business of LED products, medical & other appliances, and automobiles. The LED display market in India is growing rapidly, supported by government initiatives like Smart Cities and Digital India. The market size for LED displays in India is estimated at ₹2,000 crore, growing at a CAGR of 20%.
Key applications include public transportation (railways, airports, and bus stations), advertising, and smart city projects.
In late August, the company received Letters of Acceptance (LOAs) from South Central Railway (Secunderabad Division) and Northern Railway for railway-related works, worth ₹1.73 crore.
MIC Electronics shares deliver nearly 10000% in 5 years
Though the company shares remained under pressure in the recent weeks, they are still trading with a massive gain of 9763% over the last five years. During this period, the shares have moved from ₹0.60 to the current level of ₹60. Impressively, the shares have delivered multibagger returns over the last two years, with a 150.44% rally in 2024 and 148% in 2023.
The massive rise in the share price over a short period has significantly boosted investor wealth.
An investor who had put ₹1 lakh into the stock five years ago and held onto it would have seen its value grow to nearly ₹1 crore, highlighting the wealth-creating potential of the stock market when the right counters are chosen.
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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