This company's shares surged 51% in 3 days
What's the story
The share price of MIC Electronics has witnessed a massive surge of over 51% in just three trading sessions. The small-cap stock rose as much as 18.55% to ₹77.96 apiece on the Bombay Stock Exchange (BSE) today, extending its rally for the third consecutive session. The surge is largely driven by positive sentiment over recent GST rate cuts by the government and robust trading volumes.
Market impact
GST rate cut on electronics boosts sentiment
The GST Council's decision to cut GST rates on air conditioners and televisions from 28% to 18% has fueled the rally in MIC's share price. The company, which deals in LED products, medical and other appliances, is expected to benefit from this rate cut on electronics. This could lead to reduced prices, boosted sales, and increased profits for the company.
Business expansion
Technical breakout signals potential for sustained rally
Besides the GST rate cut-driven rally, MIC Electronics has also secured a contract worth ₹1.73 crore from South Central Railway and Northern Railway for railway-related projects. The company's share price has seen a strong breakout, ending a 135-day double bottom formation at the ₹68 level, with solid institutional participation. Anshul Jain, Head of Research at Lakshmishree Investments, noted this technical strength often indicates the start of a sustained rally rather than a short-lived spike.
Stock analysis
Share price performance and expert advice
MIC's stock price has rallied 26% in six months but is down by 10% year-to-date (YTD). Over the long term, MIC Electronics shares have given multibagger returns with a massive jump of 153% in two years, and an astonishing rise of 11,000% over five years. Jain advises traders and investors to keep a close watch as the stock rides institutional support and strong price action.