Buy MIC Electronics; target of Rs 50: Firstcall

Firstcall Research is bullish on MIC Electronics and has recommended buy rating on the stock with a medium term target of Rs 50, in its April 17, 2010 research report.

"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."

"Price to Book Value of the stock is expected to be at 1.12x for FY09E and 0.90x for FY10E. „MIC Electronics Ltd bagged a 3 year long contract to supply video screen with Parramatta Eels National Ruby Club through their alliance with equity Pty Ltd. The company launches solar LEDs for rural areas which are yet to be connected to the power grids. These LEDs are cost effective and high performance oriented. MIC received purchase orders worth Rs.14.15 Crores. We recommend a 'BUY' on the stock with a target price of Rs 50 for medium to long term," says Firstcall Research

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