Shares of MIC Electronics Limited witnessed a sharp intra-day surge on Monday, December 1, climbing almost 7% after the company announced a significant new contract win from the Indian Railways. The small-cap stock, trading under ₹50, attracted strong investor interest following the order book update filed with the exchanges.
Details of the New Railway Contract
The company informed the bourses that it has secured a fresh contract from the Vijayawada Railway Division. The project involves setting up an IP-based Integrated Passenger Information System at two railway stations: ANV and YLM, which fall under the Vijayawada Division's jurisdiction.
According to the official filing, MIC Electronics received a Letter of Acceptance (LoA) for this project. The total contract value is pegged at ₹1,49,88,884.77 (Rupees One Crore Forty-Nine Lakh Eighty-Eight Thousand Eight Hundred Eighty-Four and Seventy-Seven Paise Only). This amount covers the comprehensive scope of work, including design, supply, installation, testing, and commissioning of the integrated system.
The company clarified that the order was secured through a competitive tender process and not on a nomination basis. The work is scheduled to be executed over a period of 12 months from the date of signing the formal agreement.
Stock Performance and Multibagger Track Record
Reacting to the news, the MIC Electronics share price rallied as much as 6.8% during the day, hitting an intra-day high of ₹47.68. This positive movement comes despite the stock experiencing significant volatility over the past year.
Currently, the stock trades substantially below its 52-week high of ₹95.90, recorded in December 2024, representing a more than 50% decline from that peak. It touched a 52-week low of ₹42.25 just last week. The recent performance shows declines across several time frames:
- 11% drop in the last 1 month
- 9% fall in the last 3 months
- 18% decrease over the past 6 months
- 44% loss in the last 1 year
However, taking a longer-term view reveals a different story. Over a 5-year period, the stock has delivered multibagger returns, surging over 285%, which highlights its potential for significant growth over extended horizons.
Strategic Expansion in Railway Technology
This new contract reinforces MIC Electronics' strategic focus and growing footprint in the railway technology infrastructure sector. The company is positioning itself as a key player supporting Indian Railways' digital transformation journey.
The push towards smarter, digitally-enabled passenger communication systems is a core part of the national transporter's modernization plans. By providing IP-based integrated information systems, MIC Electronics is contributing to enhanced passenger experience and operational efficiency at railway stations.
The award from the Vijayawada Railway Division underscores the company's capability to secure and execute technologically advanced projects in a competitive bidding environment, potentially paving the way for more such orders in the future.
