FIEM In­dus­tries Ltd: Pow­er­ful lamp!

Money Times - - Stock Buzz -

(BSE Code: 532768) (CMP: Rs.917.05) (FV: Rs.10)

Haryana-based FIEM In­dus­tries Ltd (FIEM) is an auto com­po­nent man­u­fac­tur­ing com­pany and a lead­ing man­u­fac­turer of au­to­mo­tive light­ing and sig­nal­ing equip­ment and rear view mir­rors. It is among the first com­pa­nies in In­dia to in­tro­duce LED lights in two-wheelers. Ma­jor­ity of its rev­enue comes from two mar­quee clients in the two-wheeler seg­ment - HMSI (45%) and TVS Mo­tors (26%). It of­fers a wide range of light­ing sys­tems and rear view mir­rors, sheet metal parts and plas­tic com­po­nents for two and four-wheelers. Its prod­uct port­fo­lio in­cludes head lamps, tail lamps, roof lamps, wheel cov­ers, warn­ing tri­an­gle, mud­guards, LED Dis­play Pan­els, etc. FIEM launched its Rs.59 crore IPO in Septem­ber 2006 priced at Rs.145/share to fi­nance its ex­pan­sion plans and to set up an ad­di­tional man­u­fac­tur­ing fa­cil­ity. It has nei­ther re­ported losses nor ex­panded its eq­uity ever since its IPO, which re­flects a slow-but-steady con­sis­tent growth in the top-line and bot­tom-line year af­ter year with reg­u­lar div­i­dend pay­outs to share­hold­ers. Its rev­enue has grown 6x whereas PAT has grown ~9x over the last 8 years. It has some ag­gres­sive busi­ness plans lined up ahead with an aim to be­come a Rs.2000 crore com­pany by 2020. There­fore, buy the stock on ev­ery de­cline for as­sured dou­ble-digit re­turns.

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