Stock Watch – MIC Electronics

MIC Electronics is a global leader in the design, development & manufacturing of LED Video Displays, high-end Electronic and Telecommunication equipment and development of Telecom software since 1988. It has marked presence in the highly dynamic domains of:
LED Video, Graphics and Text Displays
LED Lighting Solutions.Embedded, System and Telecom software
Communication and Electronic Products

Today, MIC’s flagship products are LED Video Displays (indoor / outdoor / mobile), that have become an integral part of Sports Stadiums, Transportation Hubs, Digital Theatres and Theme Parks, Advertisements and Public Information Displays.

A healthy Rs.200cr order is in the pipeline,that includes coach lighting, emergency lighting, LED indicators in long-distance trains, etc.Expect MIC to grow at a CAGR of over 35% over the next 2 years. LED segment, currently accounting for nearly 69% of the revenues would be the key growth driver.

At the current market price of Rs 35, the scrip is quoting at 4.20x FY09e earnings of Rs.8.33 per share and 3.08x FY10e earnings of Rs.11.39 per share.

MIC Electronics had an IPO in May-2007. Since then the stock has dropped below its issue price. Investors with Risk appetite for Small Caps can BUY the stock which can give good returns from current levels.

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