FIEM Industries Ltd: Powerful lamp!
(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.