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You are here : IndiaNotes >> Research & Analysis >> Companies >> FIEM Industries Ltd. >> Research

FIEM Industries Q2FY18: Net sales is expected to grow at a CAGR of 14%; Overweight

Firstcall India Equity | 06 Dec, 2017  | Follow Author | Add to my Favourites 
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  • FIEM Industries Ltd was founded and incorporated in 1989 which is one of the leading manufacturers of Automotive Lighting & Signaling Equipments and Rear view Mirrors of India.

  • The company achieved a turnover of Rs. 3265.30 mn for Q2 FY 2017-18 as against Rs. 3249.42 mn in the corresponding quarter of the previous year.During the quarter, EBIDTA stood at Rs. 388.19 mn as against Rs. 365.16 mn in the corresponding period of the previous year, up by 6.31%.

  • Profit before tax (PBT) stood at Rs. 217.66 in Q2 FY18 as against Rs. 204.83 mn in the corresponding quarter of the previous year.

  • During the quarter, net profit registered at Rs. 143.25 mn as compared to Rs. 141.09 mn in the corresponding quarter ending of previous year.

  • EPS of the company stood at Rs. 10.89 in Q2 FY18 against Rs. 10.72 in the corresponding quarter of the previous year.

  • Total Debt of the company diminished to Rs. 2176.3 mn as on 3oth Sep 2017 as compared to Rs. 2280.8 mn as of31St Mar 2017.

  • FIEM signed a “Memorandum of Understanding” (MoU) with Aisan Industry Co., Ltd., Japan and Toyota Tsusho Corporation, Japan on for establishing a joint venture company in India to manufacture Fuel Pump Module and IC connector Assembly for two-wheelers and three-wheelers.

  • Net Sales and PAT of the company are expected to grow at a CAGR of 14% and 5% over 2016 to 2019E, respectively.

           OUTLOOK AND CONCLUSION


  • At the current market price of Rs. 920.00, the stock P/E ratio is at 27.88 x FY18E and 23.20 x F Y19E respectively.

  • Earning per share (EPS) of the company for the earnings for FY18E and FY19E is seen at Rs. 33.00 and Rs. 39.66 respectively.

  • Net Sales and PAT of the company are expected to grow at a CAGR of 14% and 5% over 2016 to 2019E respectively.

  • On the basis of EV/EBITDA, the stock trades at 9.42 x for F Y18E and 8.10 x for F Y19E.

  • Price to Book Value of the stock is expected to be at 2.67 x and 2.40 x for F Y18E and F Y19E respectively.

  • Hence, we say that, we are Overweight in this particular scrip for Medium to Long term investment.


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About Firstcall India Equity

Firstcall India Equity of Firstcall India Equity Advisors Pvt. Limited (FIEA), is a leading financial services provider in India and a SEBI Registered Category-I Merchant Banker. FIEA is a culmination of a credible Equity Research Capabilities, Long Standing Relationship with leading FIIs, DFIs, MFs, Overseas Pension Funds etc. The company’s research caters to the needs of the largest news wire and media houses of the world namely Reuters, Thomson, Capital IQ, Themarkets.com, Emerging Markets Euro money Publications-UK. The Company is among the major players in the Debt and Equity markets.


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Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor IndiaNotes.com accept any liability whatsoever arising from the use of any of the above contents.




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