Railway penny stock under Rs 60: MIC Electronics Ltd investment in step-down subsidiary, Cellular Galaxy Electronics LLC, Dubai
DSIJ Intelligence-1 / 24 Oct 2025/ Categories: Multibaggers, Penny Stocks, Trending
The stock gave multibagger returns of 350 per cent in 3 years and a whopping 6,500 per cent in 5 years.
MIC Electronics Limited, via its wholly-owned Dubai subsidiary, SOA Electronics Trading LLC (SOA), has completed a strategic acquisition by investing Rs 53.8 crore in Cellular Galaxy Electronics LLC, Dubai, acquiring 99 per cent of its paid-up share capital in cash. This investment, completed on October 23, 2025, was noted by the Management Committee of the Board and has received requisite approvals from the competent authorities in Dubai. Cellular Galaxy Electronics LLC, incorporated on August 17, 2023, with a share capital of AED 2,24,93,000 and a turnover of AED 3,73,41,698 for the year ended December 31, 2024, operates in the Electrical & Electronic related appliances trading industry, focusing on a diverse range of activities including Mobile Phones & Accessories Trading, Computer and Data Processing requisites, and Antennas Trading, which aligns with the group's business interests. This transaction is considered a related-party transaction with the stepdown subsidiary being a related party of the subsidiary and the company, but it was executed at an arm's-length price.
MIC Electronics Ltd is also focusing on Semiconductor wafer production through an MoU with Singapore's Top2 PTE Limited to find a Taiwanese partner, targeting 25,000-30,000 wafers monthly. Domestically, the company received RDSO approval for its microprocessor controller for Railway coach AC units. Additionally, it secured two new Indian Railways orders totalling Rs 1,76,20,864.50: one from Sambalpur Division for upgrading station announcement systems, and another from Integral Coach Factory for supplying LED Emergency Lights.
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 1,300 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 350 per cent in 3 years and a whopping 6,500 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.