Mehabe score: 4 G Factor: 4 Piotski Score: 7 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 4 and Piotski score of 7.
Description
Fiem Industries Ltd was originally incorporated in India as Rahul Auto Private Limited on February 6, 1989, in New Delhi and was founded by Mr. J.K. Jain. It is engaged in the business manufacturing and supply of auto components like automotive lighting. #
Main Points
Market Leader
The Company is a manufacturer of automotive lighting and signaling equipment and rearview mirrors for two and four-wheelers #
It has about 27-30% market share of total 2 Wheeler headlamp market in India. #Site:FIEMIND
Market Cap:
Rs 980 cr
Price:
744.0
Trading pe:
22.2x
Book-value:
395/share
Div yield:
1.75 %
Earning yield:
7.01%
Face-value:
10.0/share
52week high:
769.00
52week low:
350.10
Technical Analysis
Stock trades at 744.0, above its 50dma 642.92. It also trades above its 200dma 573.32. The stock remains bullish on techicals
The 52 week high is at 769.00 and the 52week low is at 350.10
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
– has been maintaining a healthy dividend payout of 24.62%
-Debtor days have improved from 33.28 to 20.37 days.
Weakness
– The company has delivered a poor sales growth of 10.85% over past five years.
-Tax rate seems low
– has a low return on equity of 12.99% for last 3 years.
Competition
– The industry trades at a mean P/E of 31.1x. WABCO India trades at the industry’s max P/E of 125.91x. FIEMIND trades at a P/E of 22.2x
– Industry’s mean G-Factor is 4.2 while the mean Piotski score is 7.0. FIEMIND has a G-Factor of 4 and Piotski scoreof 7.
– Average 1 month return for industry is 2.9%. The max 1- month return was given by Fiem Industries: a return of 12.75 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 421.0 cr compared to Rs 322.0 cr for period ended Mar 2020, a rise of 30.7%
Operating Profits reported at Rs 55.0 cr for period ended Mar 2021 vis-vis 39.0 for period ended Mar 2020 .
Operating Margins expanded 95.2 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 21.29 compared to Rs 15.08 for previous quarter ended Dec 2020 and Rs 16.98 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1221.0 cr for period ended TTM vis-vis sales of Rs 1379.0 cr for the period ended Mar 2020, a fall of 12.9%. The 3 year sales cagr stood at -0.5%.
Net Profit reported at Rs 47.0 cr for period ended TTM vis-vis sales of Rs 75.0 cr for the period ended Mar 2020, falling 59.6%.
Company reported a poor Net Profit CAGR of -3.9% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 207.0 cr for period ended Mar 2020 vis-vis Rs 121.0 cr for period ended Mar 2019
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 15.0% compared to 13.0% over the last 3 Years. – The stock has given a return of 109% on a 1 Year basis vis-vis a return of -2% over the last 3 Years. – The compounded sales growth on a TTM bassis is -21% vis-vis a compounded sales growth of 11% over the last 3 Years. – The compounded profit growth on a TTM basis is -35% vis-vis a compounded profit growth of 22% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 8.72% vis-vis 8.42% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 24.72% vis-vis 25.02% for Dec 2020
Conclusion
– has reduced debt.
– is almost debt free.
– has been maintaining a healthy dividend payout of 24.62%
-Debtor days have improved from 33.28 to 20.37 days. – The company has delivered a poor sales growth of 10.85% over past five years.
-Tax rate seems low
– has a low return on equity of 12.99% for last 3 years.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 642.92 and is trading at 744.0, thus bullish price action wise.
