Multibagger railway stock under Rs 55: Company plans acquisition of Neo Semi SG Pte. Ltd., advancing into semiconductors and green tech sectors!

MIC Electronics Ltd (MIC) held a Board Meeting, where they granted in-principle approval for the acquisition of equity shares in Neo Semi SG Pte. Ltd. (NSPL), a Singapore-based company. This strategic move aims to diversify MIC's portfolio into next-generation technologies. The Board's final decision on the acquisition is contingent upon concluding negotiations, determining per-share valuation, and completing due diligence of NSPL, along with other terms and conditions. The Managing Director has been authorised to identify, negotiate, and appoint necessary intermediaries, such as valuers and consultants, for this purpose, and to discuss and negotiate the investment in NSPL's equity shares.

NSPL's strategic portfolio includes a Memorandum of Understanding with a Silicon Valley-based semiconductor chip design company, an energy management company focused on IoT-based climate resilience and smart grid solutions, and India's largest electronics refurbishment and reverse logistics company, poised to enter e-waste management. This proposed acquisition aligns with MIC Electronics' long-term strategy to expand into high-tech sectors like semiconductors, green energy, and digital service infrastructure, expecting significant value creation. The transaction remains subject to customary conditions, including independent valuations, comprehensive due diligence, finalisation of the transaction structure, and necessary regulatory approvals, with the current understanding being non-binding.

Earlier, MIC Electronics Ltd. secured a significant domestic work order from the Palakkad Division of S&T for an IPIS system at Kannur station, valued at over Rs 1.28 crore, which includes a six-year maintenance contract. This project is part of the "Improvements to Passenger Amenities" under the Amrit Bharat Station Scheme. They also received a BIS Certificate for their Automatic Data Processing Machine. More recently, the company secured a two-year annual maintenance contract from the Vijayawada Division - S & T for 10 indoor and 5 outdoor display boards at Vijayawada Railway Station, valued at Rs 13.48 lakh.

About the Company

MIC Electronics Ltd., founded in 1988, is a leading manufacturer of LED displays (indoor, outdoor, mobile), lighting solutions (indoor, outdoor, solar), telecom equipment, railway and software. They also produce medical equipment like oxygen concentrators and batteries. Headquartered in India, MIC exports its products globally and has a presence in the USA, Australia, the UK and other countries. , MIC Electronics Ltd has been awarded ISO 45001:2018 and ISO 14001:2015 certifications, recognising their robust Environmental Management System across their diverse product portfolio, including LED display systems, lighting products, EV chargers, and railway-related electronic solutions

Result: According to Quarterly Results, the company reported net sales of Rs 11.61 crore and net profit of Rs 1.67 crore in Q1FY26. In its annual results, the net sales increased by 8 per cent to Rs 94.76 crore in FY25 compared to FY24. The company reported a net profit of Rs 9.83 crore in FY25 compared to Rs 61.84 crore in FY24.

MIC Electronics has a market cap of over Rs 1,200 crore and has delivered good profit growth of 19.2 per cent CAGR over the last 5 years. The stock gave multibagger returns of 305 per cent in 3 years and a whopping 5,500 per cent in 5 years.

Disclaimer: The article is for informational purposes only and not investment advice.