Invest in MIC Electronics Considering the Bright Prospects
Strong order wins in the domestic LED display segment and the joint-venture to tap the lucrative stadium advertising market in Latin America and Europe hold promise.
Investments with a one-two year perspective can be considered in the shares of MIC Electronics, considering the bright prospects for its LED (light emitting diode) display business and potential to sharply scale up earnings. At Rs 905, the stock trades at 30 times its estimated current year earnings. This appears justified considering the company’s improving margin profile (profits have more than trebled in the nine months ended December 2007 compared to the same period in the previous year) on the back of increasing contribution from the LED display business, in which there are not comparable listed peers.
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[...] of 1 equity share of Rs 10 each into 5 equity shares of Rs 2 each. We had recommended to buy MIC electronics few days back on basis of it’s bright prospectus. Record Date, Stock [...]