Recent Price Movement and Market Context
On 26 Nov 2025, MIC Electronics recorded its lowest price in the past year at Rs.42.6, underperforming its sector by 2.86% on the day. This decline comes despite the broader market rally, with the Sensex advancing 1.12% to close at 85,531.93 points, just 0.32% shy of its 52-week high of 85,801.70. The Sensex has been on a three-week consecutive rise, gaining 2.78% over this span, supported by mid-cap stocks which led the market with a 1.14% gain in the BSE Mid Cap index.
In contrast, MIC Electronics has been trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling persistent weakness in its price momentum. The stock’s four-day consecutive decline has contributed to a notable underperformance relative to the market and its industrial manufacturing peers.
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One-Year Performance and Valuation Metrics
Over the past year, MIC Electronics has recorded a total return of -49.37%, significantly lagging behind the Sensex’s 6.95% gain and the broader BSE500 index’s 5.64% return. The stock’s 52-week high was Rs.95.9, indicating a substantial decline from its peak price.
From a valuation standpoint, MIC Electronics exhibits a Return on Capital Employed (ROCE) averaging 4.66%, reflecting limited capital efficiency. The company’s Enterprise Value to Capital Employed ratio stands at 4.1, which is considered high relative to its ROCE, suggesting an expensive valuation in relation to the returns generated. This contrasts with its peers, where the stock is trading at a discount compared to their average historical valuations.
Financial Results and Profitability Trends
The company’s financial results for the nine months ended September 2025 show a Profit After Tax (PAT) of Rs.7.41 crores, representing a decline of 86.20% compared to the previous period. Interest expenses for the same period increased by 36.36% to Rs.4.35 crores, indicating a higher cost of debt servicing.
Additionally, the Debtors Turnover Ratio for the half-year period is notably low at 0.12 times, which may point to challenges in receivables management and cash flow conversion. These factors collectively highlight pressures on the company’s profitability and operational efficiency.
Debt and Capital Structure Considerations
MIC Electronics carries a high Debt to EBITDA ratio of 6.74 times, signalling a substantial debt burden relative to earnings before interest, tax, depreciation, and amortisation. This elevated leverage level may constrain financial flexibility and increase vulnerability to interest rate fluctuations.
Promoter Shareholding Trends
Promoter holdings in MIC Electronics have declined by 4.05% over the previous quarter, with current ownership at 58.01%. This reduction in promoter stake could be interpreted as a shift in confidence regarding the company’s near-term prospects.
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Comparative Market Performance
While the industrial manufacturing sector and broader market indices have shown resilience and positive returns over the last year, MIC Electronics has not mirrored this trend. The stock’s negative returns contrast with the BSE Mid Cap’s gains and the Sensex’s proximity to its 52-week high, underscoring a divergence in performance within the sector.
Summary of Key Concerns
The combination of a sustained price decline to a 52-week low, subdued profitability metrics, elevated debt levels, and reduced promoter shareholding presents a challenging backdrop for MIC Electronics. The company’s financial indicators reflect pressures on earnings and capital efficiency, while its valuation metrics suggest a premium relative to returns generated.
Despite the broader market’s upward trajectory, MIC Electronics continues to face headwinds that have contributed to its recent price weakness and underperformance relative to peers and indices.
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