Recommendation from Electric Equipment and Food processing Companies

The scrips in this column have been recommended with a 15-day investment horizon in mind and carry high risk. Therefore, investors are advised to take into account their risk appetite before investing, as fundamentals may or may not back the recommendations. 

MIC ELECTRONICS LTD
CMP - ₹71.11
BSE CODE 532850
Volume 5,68,529
Face Value ₹2
Target ₹78 - ₹80
Stoploss ₹66 (CLS)

MIC Electronics Ltd is a global leader in designing, developing, and manufacturing LED video displays, high-end electronic and telecommunication equipment, and telecom software. When assessing the financial performance, there was an impressive revenue growth of around 675 per cent, increasing from ₹2.96 crore in Q4FY23 to a total revenue of ₹22.96 crore in Q4FY24. The net profit also experienced outstanding growth, multiplying by leaps and bounds to reach ₹49.59 crore, compared to ₹2.43 crore in the corresponding quarter of the previous year. The company recently gained attention for announcing a qualified institutional placement (QIP) issue at a floor price of ₹48.30 per share and for receiving a letter of acceptance from the Firozpur Division of the Northern Railway Zone for an order valued at ₹3 crore. Shares, experiencing heightened buying interest, soared by 30 per cent over the last month and have further upside potential. Therefore, we recommend BUY.

GRM Overseas Ltd
CMP - ₹185.60
BSE CODE 531449
Volume 56,034
Face Value ₹2
Target ₹204 - ₹207
Stoploss ₹173 (CLS)

Established as a rice manufacturing and trading house, the company has gradually expanded its reach, developing a market for its rice in more than 38 countries and earning the title of the third-largest rice exporter in India. The company demonstrated marginal growth, with a 1.69 per cent rise from ₹359.38 crore in Q4FY23 to total revenue of ₹365.44 crore in Q4FY24. The net profit, on the other hand, showed remarkable growth, reaching ₹15.68 crore, compared to ₹8.85 crore in the same quarter of the previous year Recently, the board approved raising ₹136.5 crore through the issuance of share warrants on a preferential basis to promoters and nonpromoter investors. The funds raised will be used to expand the '10X' brand in India, transforming it into a comprehensive food FMCG product company. Additionally, the funds will be allocated to explore future inorganic growth opportunities, including strategic mergers and acquisitions, and to improve operational capabilities. Considering this growth potential, we recommend BUY.