MIC Electronics Limited

Technology — Electronic Components · NSE

₹34.30−₹0.60 (−1.72%)

DalalBaazaar Score

52 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by the company is currently loss-making, micro-cap size, which brings thin liquidity, a beta above 1.3, so it swings harder than the index.

In simple words: The company is currently losing money, with both sales and profits growing well. Thin profit margins are the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

The 60-second version of MIC Electronics Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

MIC Electronics Limited designs, develops, manufactures, and sells Light-Emitting Diode (LED) based street lights and video displays in India. It operates through three business segments, LED Products, Medical & Other Appliances, and Automobiles.

IndustryElectronic Components

SectorTechnology

Employees90

Annual revenue₹165 Cr

How does it make money?

Turns over ₹165 Cr a year. Of every ₹100 of sales, about ₹-8 reaches shareholders as profit, with ₹16 left at the operating level before interest, tax and depreciation. Each of its 90 employees supports ₹1.83 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.83 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSULTANCY SERV LT, INFOSYS LIMITED, HCL TECHNOLOGIES LTD, WIPRO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 9.7% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE32.0%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +3192% while net margin moved -364% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+3192%

Margin effect-364%

DalalBaazaar Score

52/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative
✗ ROE has fallen by 6.1 points over the period

Quality vs. Valuation

Company Quality

59/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

25/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

41.2x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on capital is rising
ROCE has improved from 0.9% to 9.7%.
Very low debt
Debt/Equity of 0.22x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention1

Return on equity is falling
ROE has dropped from 0.2% to -5.8% — each rupee of shareholder capital earns less than it did.

Red Flags

4 items require attention · 4 high

🔴Debt has risen sharplyFinancial
Total debt is up 318% over 3 years, from ₹11 Cr to ₹44 Cr.
🔴The company is lossmakingFinancial
Net profit of -₹13 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 35.3 points, from 51.0% to 15.7%.
🔴Receivables growing faster than salesFinancial
Receivables up 8387% against revenue up 3192% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Self-funding with balance-sheet headroom
Positive free cash flow of ₹0 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 51.0% to 15.7%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 8387% against revenue up 3192%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 0.2% to -5.8%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 165% a year✓ 220.5% CAGR
Latest reported year was 276.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 14%✓ 15.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹0 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 9.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 4 neutral · 3 weak

Market Cap

₹1,022 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

3.83x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹-0.5

Loss-making

Negative earnings per share — the business is losing money

ROE

-5.8%

Weak

Weak capital efficiency

ROCE

9.7%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.22x

Low

Conservative leverage

Revenue Growth (YoY)

276.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

28.6%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹0 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

7.6%

Average

Average margins

Net Margin

-5.5%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.91

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.74

High swing

Swings more than the market in both directions

52W Range Position

15%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

34.9 / 36.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

41.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹5 Cr	₹50 Cr	₹83 Cr	₹165 Cr	+220.5%
EBITDA	₹3 Cr	₹15 Cr	₹19 Cr	₹26 Cr	+116.3%
EBITDA Margin	51.0%	29.5%	22.4%	15.7%	—
PAT (Net Profit)	₹0 Cr	₹62 Cr	₹10 Cr	-₹13 Cr	—
EPS	₹0.01	₹2.79	₹0.4	₹-0.53	—
ROE	0.2%	50.7%	4.4%	-5.8%	—
ROCE	0.9%	15.8%	7.3%	9.7%	—
Total Debt	₹11 Cr	₹12 Cr	₹48 Cr	₹44 Cr	+61.1%
Free Cash Flow	-₹9 Cr	-₹13 Cr	-₹73 Cr	₹0 Cr	—

🟢 Revenue has grown at 220.5% a year over 3 years.

🟢 EBITDA has grown at 116.3% a year over 3 years.

🔴 EBITDA Margin has fallen from 51.0% to 15.7% over 3 years (-35.3 pts).

🔴 PAT (Net Profit) has turned negative, from ₹0 Cr to -₹13 Cr.

🔴 EPS has turned negative, from ₹0.01 to ₹-0.53.

🔴 ROE has fallen from 0.2% to -5.8% over 3 years (-6.1 pts).

🟢 ROCE has risen from 0.9% to 9.7% over 3 years (+8.8 pts).

🔴 Total Debt has grown at 61.1% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹9 Cr to ₹0 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹354 Cr

Total Liabilities

₹137 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹3 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

62.6%

Corporate Actions

Ex-Dividend Date

23 Dec 2009

Peer Comparison

Company	P/E	ROE
TATA CONSULTANCY SERV LT	17.3x	45.6%
INFOSYS LIMITED	15.8x	32.0%
HCL TECHNOLOGIES LTD	20.4x	24.6%
WIPRO LTD	14.5x	15.9%

Recent News

3 mixed3 general

MIC Electronics (NSEI:MICEL) - Stock Analysis

Simply Wall Street, 13 Oct

Small Cap Stock Zooms 3% Post Q4 Result Announcement | Check Info

Goodreturns, 15 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

MIC Electronics Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

MIC Electronics Allots 5.69 Crore Shares To Acquire 59% Stake In Neo Semi SG

Sahi, 04 SeptM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

MIC Electronics Submits EGM Corrigendum Publications Following NSE Observations

scanx.trade, 11 Oct

MIC Electronics Share Price Target 2026: Bull Case Rs 55.00, Bear

Univest, 30 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth

MiddlingBusiness Quality

WeakProfitability · Valuation · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 4 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑