Smallcap stock MIC Electronics has jumped nearly 54 per cent in last one month after the recent GST cuts by the government. However, the scrip has descended over 8 per cent in last five trading sessions.
The smallcap stock rallied after the GST Council’s decision to reduce Goods & Services Tax (GST) on air conditioners and televisions from 28 per cent to 18 per cent.
The company is likely to gain from the reduction in GST rates on electronics, which could lower prices and drive higher sales and profits.
In addition to the GST-led boost, it has also secured a ₹1.73 crore contract from South Central Railway and Northern Railway for railway-related projects.
MIC Electronics share price has given multibagger returns by soaring over 287.41 per cent in five years.
MIC Electronics share price – Should you buy or sell?
Brokerage firm Anand Rathi has named MIC Electronics as ‘pick of the month’. The brokerage firm has given the target price of ₹85 with an upside potential up to 17.24 per cent.
“MICEL has delivered a breakout above the crucial 70 mark on the weekly chart, supported by a noticeable rise in volumes, which adds strength to the move. Technical indicators are also favoring the bullish sentiment, with both MACD showing a bullish divergence and RSI indicating positive divergence, suggesting momentum shift towards the upside. Given these supportive signals, accumulation is advised in the price band of 70–75. A protective stoploss should be placed at 65 on a closing basis to manage risk. On the upside, the stock has the potential to test 85 levels in the near term,” the firm said.
Meanwhile, Khandala Securities, while giving ‘overweight’ tag, said that With rising reserves and a stronger balance sheet enabling acquisitions and new ventures, MIC is well-positioned to capture opportunities across large addressable markets, infrastructure programs, and semiconductors, offering significant potential for sustained topline growth, margin expansion, and long-term value creation.
“MIC is expanding into semiconductors through an MoU with Singapore-based Top2 PTE Ltd. and a proposed acquisition of Neo Semi SG Pte. Ltd., targeting a Taiwanese fab with 25,000–30,000 wafers monthly. This initiative positions the company in AI, IoT, high-performance computing, and smart energy solutions, diversifying into sunrise sectors. Leveraging strong R&D, certifications, and public-sector access, this expansion supports its strategy to enter high-tech, high-governance domains and drive long-term growth. Financially, MIC has delivered a strong turnaround, with revenue rising from Rs.545.75 million in FY24 to Rs.947.64 million in FY25 and operating profit reaching Rs.192.85 million. PAT was Rs.98.31 million, impacted by higher interest costs and absence of exceptional gains. Q2 FY2026E revenue is projected at Rs.496.38 million versus Rs.274.6 mn last year, nearly doubling YoY. Management targets Rs.5, 000 million revenue in 3–4 years, with EBITDA margins improving from 19% in FY25 to 27–30% by FY26–FY27. Revenue is projected to grow 80% in FY2026 and 75% in FY2027, with PAT expanding 201% and 92%, respectively. Hence, we say that, we are Overweight in this particular scrip for Long-term investment,” the firm said.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
