Fundamental Analysis

FIEM INDUSTRIES LTD.
Ticker : 532768
BUY: Rs1,274.15
Target: Rs1,45

Fiem Industries is a well-reputed name in the automotive light- ing industry with nine state-of-the-art manufacturing facilities spread across India. It also has R&D/design centres in India, Japan & Italy and is a preferred supplier to the leading OEMs in India as well as abroad. On the consolidated quarterly front, the company recorded an increase of 12.01 per cent in its net sales & operating income, which stood at Rs 419.22 crore for Q2FY22 as compared to Rs 374.27 crore reported for Q2FY21. The oper- ating profit stood at Rs 52.31 crore in Q2FY22, squeezing 0.98 per cent from Rs 52.83 crore posted in Q2FY21. The company's net profit was recorded at Rs 26.8 crore in Q2FY22, improving 9.74 per cent from Rs 24.42 crore earned in Q2FY21. The company is actively adding new clients, especially in the electric vehicle space, where LED content is higher and the share of which is growing. Hence, considering the company’s well-diversified portfolio and optimistic growth prospects, we recommend BUY.