MIC Electronics (MICEL)

FairStock Score: 12/100 — RISKY

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

Strengths

• Promoter holding is high at 55.52%, indicating significant insider alignment.
• Debt-to-equity ratio of 0.20 suggests a conservative leverage position.
• Reported sales growth of 667.91% shows strong top-line momentum, albeit from an unclear base.
• Latest quarter sales of ₹90 crore indicate a meaningful scale of operations.

Concerns

• P/E of 95.99 and P/B of 4.65 leave no margin of safety at the current price.
• ROE of 4.10% and ROCE of 8.71% are weak; latest quarter net profit of ₹2 crore on ₹90 crore sales is a razor-thin margin.
• Profit growth is negative at -13.36% despite huge sales growth, showing revenue is not converting into shareholder earnings.
• Piotroski F-Score of 4/9 and FairStock Score of 25/100 point to poor fundamental quality.

AI Analysis

As I look at MIC Electronics, I am reminded that in the stock market, price is what you pay, value is what you get. The price today is ₹41.68, translating to a market cap of ₹892 crore. For that, I am offered a business with a book value of ₹8.96 per share, so I pay 4.65 times book. I am also paying nearly 96 times earnings. That is not a Graham-style price. The company's latest quarter shows revenue of ₹90 crore but net profit of only ₹2 crore; that is a net margin of roughly 2%. Full-year profit growth is negative 13.36%, despite a staggering reported sales growth of 667.91%. Such a gap between revenue and profit growth tells me this is not the kind of compounding machine Buffett seeks. Return on equity is just 4.10%, return on capital employed 8.71%; these are far below what an owner should demand. The Piotroski F-Score is 4 out of 9, and the FairStock Score is 25 out of 100, both flags. The only favourable aspects are a low debt-to-equity ratio of 0.20 and promoter holding of 55.52%, which gives some alignment. But low debt does not make an expensive, low-return business safe. The PEG ratio of 0.14 is a statistical illusion because profit growth is negative; it is dangerous to value a company on top-line growth alone. I would need to see years of improving margins, stable returns on capital, and honest capital allocation before this gets my money. In Buffett's words, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.' Today, MIC Electronics is neither. I will remain on the sidelines.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer