Fiem Industries is a company in the automotive sector that manufactures automotive lighting and signaling equipment as well as rear-view mirrors. The company has a current market cap of 2,369 Cr. It has the potential to grow as a multi-bagger over the years. In this post let us check the latest broker reports by Edelweiss Research Team on Fiem Industries’ share price.
Diversification into LED Indoor and Outdoor Lighting and other Industries
60%-70% of Fiem Industries’ revenue comes from two-wheelers. But, the company is diversifying into LED indoor and outdoor lighting, as well as dealing with railways and buses. With nine plants spread across India, Fiem Industries has a significant presence in the automotive industry.
The company has shown steady growth in revenue and earnings over the years. The CAGR for the last 9 years: Net Sales are around 21.4%, Adjusted EPS is around 17.9% and Book Value per share is 15.8. In the last 4 years, the EBITDA has grown by around 29%. Similarly, the net profit has grown by around a compounded annual growth rate of 40%. The net sales have grown steadily over the last 10 years.
Comparison with Peers
Compared with peers, Fiem Industries has outperformed in terms of EBITDA margin growth, with a growth rate of 12.3% compared to 8.2% for Minda Industries and 7.5% for Lumax, in the last year.
Technical Analysis of Fiem Industries Share Price
The stock closed at Rs. 937.25 on 6th December 2017. The weekly technical chart shows that the stock is in a consolidation mode after making an all-time high of 1510. The current consolidation range is 975-845. Range players may accumulate slowly within the range.
FAQs on Fiem Industries Share Price
The current share price of Fiem Industries is INR 1800, as per the Bombay Stock Exchange (BSE).
As of today, the market capitalization for Fiem Industries stands at approximately INR 2,369 Cr.
In conclusion, Fiem Industries is a company with a strong presence in the automotive industry. It has a potential for growth through diversification into other industries. The company has shown steady growth in revenue and earnings over the years and has outperformed peers in terms of EBITDA margin growth. The technical analysis indicates that the stock is in consolidation mode. Hence, range players may accumulate slowly within the range. These broker reports on Fiem Industries’ share price believe that once the accumulation is over, the stock can once again target 1200 and 1500 in the medium term.