[indianstockmarket] MIC Electronics - Value Buy - 100% return in year [3 Attachments]

 

[Attachment(s) from Ramesh V.K. included below]

MIC Electronics - A Value Buy

The global LED market was estimated at around US$ 4 bn in 2007 and is expected to grow at an average annual rate of 20% till  2011 (against an average growth rate of 16% during 2004 to 2007 ) to reach a size of around  US $ 8  bn.  LED  displays  have  gained  popularity  in advertisements, live entertainments and sports stadiums in recent years. Currently, North America accounts for 3 5% of the total LED market, followed by Asia, Europe, South America, and the Middle East.

MIC is the only company in India to have the design -to-manufacture'  capability  for  manufacture  of LED  video display  systems.  The  company  provides  customized  solutions based on its customer needs, location, display, and purpose.

 

Latest quarter has resulted in Net Profit growth of 25% compared to previous quarter.  (Latest results enclosed)

 

MIC Electronics Ltd bags Parramatta League Club order to install 120sqm screen for 3 years  (press release enclosed)

 

Company website - www.micelectronics.com

 

TTM EPS - 6.57

Market Rate - 41.75

Current P/E Ratio - 6.35

Industry P/E Ratio - 17.87

5 Years Sales Growth (CAGR) - 49%

5 Years EPS Growth (CAGR) - 162 %

 

Fair P/E Ratio - 11.50

Targeted Rate in the near term - 11.50 X 6.57 = Rs.75

 

I have enclosed the monitor sheet showing the entry /  exit signals and the important moving averages.  Currently trading at 7% below 200 day EMA being 44.72.   Once this stock breaks the 43-44 band, then the stock should move forward like a rocket.  Try to accumulate this stock in small small quantities for a good return in near future.   This stock has a very good support at 40-41 band.

 

Firstcall Research is bullish on this stock and has recommended buy rating on the stock with a medium term target of Rs 50, in its April 17, 2010 research report.   I dont have that report, if anyone has the same please share the same.

 

"At the current market price of the stock Rs.41.35, the stock trades at a P/E of 5.31x and 4.57x for FY10E and FY11E respectively. The EPS of the stock is expected to be at Rs.7.79 and Rs.9.05 for the earnings of FY10E and FY11E respectively.  On the basis of EV/EBDITA, the stock trades at 4.75x and 4.74x for FY10E and FY11E respectively."

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Regards,
Ramesh.

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Regards,
Ramesh

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Attachment(s) from Ramesh V.K.

3 of 3 File(s)

mic electronics latest results.TIF

mic electronics monitor report.xls

PRESS_RELEASE_19-02-2010.pdf

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