Shares of MIC Electronics, which have been running high in recent sessions, gained another 9% in Wednesday’s intraday trade to hit the day’s high of ₹77 apiece. The rally follows after the company said it entered into an MOU (Memorandum of Understanding) with Top2 PTE Limited, a Singapore-based entity, to explore, identify, and finalize a semiconductor partner from Taiwan.
“The purpose of this MOU is to establish a framework under which MIC shall engage Top2 to explore, identify, and finalize a semiconductor fabrication partner from Taiwan. The objective is to initiate semiconductor wafer production with a monthly target capacity of 25,000 to 30,000 wafers, subject to feasibility, negotiations, and regulatory compliance,” the company said in its regulatory filing today.
MIC Electronics share price jumps 60% in 8 sessions
The shares have been on a one-way rally since the start of September, supported by a sharp surge in trade volumes, causing the stock to jump 60% in just eight trading sessions. Investor sentiment toward the stock improved after the GST Council cut Goods & Services Tax (GST) rates on air conditioners and televisions from 28% to 18%.
The company is expected to benefit from the GST rate cut on electronics, which may reduce prices and boost sales and profit. Along with the GST rate cut-driven rally, the company recently received a contract worth ₹1.73 crore from South Central Railway and Northern Railway for railway-related projects.
Latest rally leads stock to rise over 12500% in five years
Though the company’s shares remained under pressure in recent months, they are still trading with a massive gain of 12,636% over the last five years. During this period, the shares moved from ₹0.60 to the current level of ₹76.42. Impressively, the stock has delivered multibagger returns over the last two years, with a 150.44% rally in 2024 and 148% in 2023.
The massive rise in share price over a short period has significantly boosted investor wealth.
An investor who had put ₹1 lakh into the stock five years ago and held onto it would have seen its value grow to nearly ₹1.11 crore, highlighting the wealth-creating potential of the stock market when the right counters are chosen.
About MIC Electronics
MIC Electronics is in the business of LED products, medical and other appliances, and automobiles. The LED display market in India is growing rapidly, supported by government initiatives like Smart Cities and Digital India. The market size for LED displays in India is estimated at ₹2,000 crore, growing at a CAGR of 20%.
Key applications include public transportation (railways, airports, and bus stations), advertising, and smart city projects.
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