MIC Electronics Limited (MICEL) AI Stock Analysis

• Market Cap: ₹7.92B
• Dividend Yield: N/A
• Average Volume (3M): 2.79M
• Price to Earnings (P/E): 137.3
• Beta (1Y): 2.45
• Revenue Growth: 34.94%
• EPS Growth: -84.31%
• Country: IN
• Employees: 82
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.08
• Shares Outstanding: 241,011,570
• 10 Day Avg. Volume: 495,336
• 30 Day Avg. Volume: 2,788,896
• PEG Ratio: -1.62
• Price to Book (P/B): 6.05
• Price to Sales (P/S): 14.21
• P/FCF Ratio: -18.44
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: ₹32.00 ▼(-28.57% Downside)
• Action: Reiterated Date: 01/30/26
• Date: Action: Reiterated 01/30/26

The score is held down primarily by weak cash-flow quality (negative free cash flow and poor cash conversion) and an expensive valuation (P/E ~98). Technicals are also soft with a negative MACD and the stock trading below key longer-term moving averages, partially offset by recent revenue growth and positive operating margins.

Positive Factors

Revenue Growth Momentum

Sustained, large year-over-year revenue growth expands the company’s scale and market presence, enabling investment in product development and fixed-cost absorption. Over 2-6 months this larger top line can support durable improvements in unit economics and bargaining power with suppliers, underpinning longer-term growth.

Positive Operating Margins

Positive EBIT/EBITDA margins show the core business converts sales into operating profit, reflecting competitive cost structure or pricing strength. This operational profitability provides a durable buffer to fund reinvestment and absorb cyclical revenue swings, assuming margins remain under management control.

Healthy Equity Base and Positive ROE

A strong equity ratio and positive ROE provide a multi-quarter cushion against shocks, reduce bankruptcy risk and increase capital-raising optionality. This financial solidity supports strategic investments or partnerships and signals that shareholder capital is generating returns over time.

Negative Factors

Consistent Negative Free Cash Flow

Persistent negative free cash flow is a structural concern: it limits the firm’s ability to self-fund capex, working capital and growth initiatives, and increases reliance on external financing. Over months this constrains strategic flexibility and raises the risk of dilution or higher borrowing costs.

Poor Cash Conversion of Earnings

Weak conversion of reported profits into cash suggests earnings quality and working-capital inefficiencies. If net income does not translate into cash over several quarters, the company may struggle to fund operations or service liabilities despite reported profits, elevating liquidity and execution risk.

Moderate Leverage and Rapid Asset/Liability Growth

Rising assets and liabilities combined with moderate leverage increase interest and refinancing exposure. If growth slows or margins compress, debt servicing and covenant pressure could force asset sales or capital raises. This structural leverage risk reduces financial resilience across multiple quarters.

MIC Electronics Limited Business Overview & Revenue Model

Company Description

MIC Electronics Limited designs, develops, manufactures, and sells LED video displays, and electronic and telecommunication equipment worldwide. The company offers indoor lighting products comprising area lights, down lights, tube lights, and bulbs; outdoor lighting products, such as street, parking, and industrial lights; solar lighting products, including street and home lighting products; and portable products, such as lanterns, home lights, and angels. It also provides indoor displays, such as indoor video screens and digital posters; outdoor displays, including outdoor video walls, digital billboards and posters, ticker displays, and perimeter displays; mobile displays comprising trailer and truck displays; and application-specific displays, such as passenger information displays and infrastructure equipment for digital theme parks, as well as oxygen concentrators. The company was incorporated in 1988 and is headquartered in Hyderabad, India.

How the Company Makes Money

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MIC Electronics Limited Financial Statement Overview

Summary

Revenue growth and positive EBIT/EBITDA margins are constructive, but profitability is volatile with a declining net profit margin. Balance sheet is supported by a strong equity position, yet leverage and rapid asset/liability growth add risk. Cash flow is the key weakness, with consistently negative free cash flow and weak cash conversion versus net income.

Income Statement

MIC Electronics Limited has shown significant revenue growth with a substantial increase from 2024 to 2025. However, despite the growth, the net profit margin decreased due to lower net income relative to revenue. The gross profit margin is moderate, reflecting decent cost management but with room for improvement. EBIT and EBITDA margins are positive, indicating operational efficiency, but the volatility in net income raises concerns about sustained profitability.

Balance Sheet

The company has a relatively healthy equity position with a strong equity ratio, but the debt-to-equity ratio suggests moderate leverage, which could pose risks if not managed carefully. Return on equity is positive, driven by recent net income improvements, indicating that stockholder investments are yielding returns. However, the significant increase in total assets and liabilities over the years highlights potential risk of over-leveraging.

Cash Flow

MIC Electronics' cash flow situation is challenging, with consistent negative free cash flow indicating difficulties in generating cash from operations. The operating cash flow to net income ratio is unfavorable, suggesting cash generation issues relative to reported profits. The free cash flow to net income ratio also reflects cash constraints, raising concerns about liquidity and the ability to fund operations without external financing.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	944.82M	947.64M	545.75M	58.92M	449.47M	10.90M
Gross Profit	159.26M	229.65M	155.36M	78.70M	85.57M	3.66M
EBITDA	169.44M	192.85M	209.15M	26.93M	76.79M	14.96M
Net Income	79.08M	96.94M	618.39M	2.44M	29.63M	-54.16M
Balance Sheet
Total Assets	3.50B	3.14B	1.41B	874.00M	750.75M	649.52M
Cash, Cash Equivalents and Short-Term Investments	92.50M	142.41M	8.92M	8.00M	1.43M	1.04M
Total Debt	458.52M	435.70M	116.54M	161.60M	78.84M	328.50M
Total Liabilities	1.22B	914.00M	187.97M	233.80M	113.01M	599.45M
Stockholders Equity	2.28B	2.23B	1.22B	601.20M	627.74M	50.07M
Cash Flow
Free Cash Flow	-5.59M	-730.18M	-97.42M	-87.10M	-658.60M	-1.46B
Operating Cash Flow	3.24M	-486.65M	-97.42M	-47.60M	-575.79M	-1.46B
Investing Cash Flow	-28.64M	-671.93M	155.28M	-49.70M	-86.07M	204.75M
Financing Cash Flow	-31.66M	1.22B	-52.27M	98.10M	662.25M	1.26B

MIC Electronics Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 44.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MICEL, the sentiment is Negative. The current price of 44.8 is above the 20-day moving average (MA) of 35.54, above the 50-day MA of 38.34, and below the 200-day MA of 49.47, indicating a bearish trend. The MACD of -1.94 indicates Positive momentum. The RSI at 36.55 is Neutral, neither overbought nor oversold. The STOCH value of 28.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:MICEL.

MIC Electronics Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SAKSOFT	68 Neutral	₹15.85B	21.87	―	0.42%	21.17%	27.66%
IKIO	62 Neutral	₹9.02B	38.21	―	0.55%	11.73%	-64.05%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ELIN	57 Neutral	₹5.80B	56.01	―	―	12.53%	119.28%
SUBEXLTD	46 Neutral	₹4.58B	56.55	―	―	-9.53%	96.99%
MICEL	43 Neutral	₹7.92B	137.28	―	―	34.94%	-84.31%
TVSELECT	43 Neutral	₹7.57B	487.30	―	0.22%	9.71%	14.13%

MIC Electronics Limited Corporate Events

MIC Electronics Closes Trading Window Ahead of Q3 FY2025 Results

MIC Electronics Limited has announced the closure of its trading window for company securities from 1 January 2026 until 48 hours after the board approves and declares the unaudited standalone and consolidated financial results for the quarter ended 31 December 2025. The restriction, which applies to directors, promoters, designated employees, specified connected persons and their immediate relatives, is in line with SEBI’s Prohibition of Insider Trading Regulations and the company’s internal code, and serves to prevent trading on unpublished price-sensitive information ahead of the forthcoming quarterly results, with the exact board meeting date to be communicated later.