Railway penny stock under Rs 50: MIC Electronics receives order of Rs 1,49,88,884.77 from the Vijayawada Railway Division

Today, the shares of MIC Electronics Ltd jumped 6.81 per cent to Rs 47.68 per share from its previous closing of Rs 44.64 per share. The stock’s 52-week high is Rs 95.90 per share while its 52-week low is Rs 44.64 per share.

MIC Electronics Limited has received a Letter of Acceptance (LoA) from the Vijayawada Railway Division (an Indian Railways Government Authority) for the provision of an IP-based Integrated Passenger Information System at the ANV and YLM Railway Stations in Andhra Pradesh. The contract, which was secured through a tender process and is domestic, is valued at Rs 1,49,88,884.77 (Rupees One Crore Forty-Nine Lakh Eighty-Eight Thousand Eight Hundred Eighty-Four and Seventy-Seven Paise Only). The scope of work involves the design, supply, installation, testing, and commissioning of the system, which is scheduled for execution and completion within 12 months from the date of the agreement's execution.

Additionally, the company is conducting a meeting at its registered office in Hyderabad on Monday, December 01, 2025, at 11:45 a.m., primarily to seek shareholder approval for two special resolutions aimed at significant capital infusion. The first resolution proposes authorising the Board to raise up to Rs 250 crore through the issuance of various securities, including Equity Shares and Convertible Bonds, predominantly via a Qualified Institutions Placement (QIP) to Qualified Institutional Buyers (QIBs), with proceeds earmarked for strategic uses like acquisitions, debt repayment, working capital, and capital expenditure. The second resolution seeks approval to raise an additional amount, not exceeding USD 15 million, through the private placement of Foreign Currency Convertible Bonds (FCCBs). Both proposals grant the Board and its committees extensive powers to finalise the specific terms and timing of these issues, ensuring strict compliance with key Indian regulatory frameworks, including the Companies Act, SEBI regulations, and FEMA, to secure the financial resources necessary for the company's future growth and operational needs.

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 its robust Environmental Management System across its diverse product portfolio, including LED display systems, lighting products, EV chargers and railway-related electronic solutions.

Result: According to Quarterly Results, the net sales increased by 226 per cent to Rs 37.89 crore and net profit increased by 30 per cent to Rs 2.17 crore in Q2FY26 compared to Q1FY26. In its half-yearly results, the net sales increased by 30 per cent to Rs 49.50 crore in H1FY26 compared to H1FY25. The company reported a net profit of Rs 3.84 crore in H1FY26 compared to Rs 4.10 crore in H1FY25.

MIC Electronics has a market cap of over Rs 1,100 crore and has delivered a good profit growth of 19.2 per cent CAGR over the last 5 years. The stock gave multibagger returns of 320 per cent in 3 years and a whopping 5,800 per cent in 5 years. The promoters of the company hold a 58.01 per cent stake as of September 2025.

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