Accumulate MIC Electronics, target price Rs 90: Anand Rathi

Anand Rathi has an accumulate call on MIC Electronics Ltd. with a target price of Rs 90. The current market price of MIC Electronics Ltd. is Rs 83.53. MIC Electronics, incorporated in 1988, is a Small Cap company with a market cap of Rs 2024.02 crore, operating in Electric /Electronics sector.

MIC Electronics' key Products/Revenue Segments include Electronic Components & Equipments, Other Operating Revenue and Job Work for the year ending 31-Mar-2024.

Financials

For the quarter ended 30-09-2024, the company has reported a Consolidated Total Income of Rs 27.68 crore, up 153.25% from last quarter Total Income of Rs 10.93 crore and up 164.41% from last year same quarter Total Income of Rs 10.47 crore. The company has reported net profit after tax of Rs 2.13 crore in the latest quarter.

Investment Rationale
After peaking near the 115 mark in September 2024, the MIC Electronics stock has undergone a sharp correction, dropping approximately 34 points, equivalent to a 29% decline. This substantial pullback has brought the price down to a critical technical level, where it has formed Bullish BAT pattern between S3 & S4 camarilla pivot which aligns with previous demand zone on the daily chart. These technical signals suggest that the stock could witness a buildup of bullish momentum in the coming weeks. From a strategic standpoint, investors may consider buying or accumulating the stock within the 81-83 range, with a potential upside target of Rs 90. To manage risk, Anand Rathi is recommended to maintain a stop-loss at Rs 77.5 on a daily closing basis.

Promoter/FII Holdings
Promoters held 66.46 per cent stake in the company as of 30-Sep-2024, while FIIs owned 4.77 per cent, DIIs $MarketsData-marketResults.newShareHolding.summary.dii.percentage per cent.