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NSE
911.00
Change Change %
-7.75 -0.84%

Updated:23 Oct, 2017, 15:53 PM IST

BSE
905.00
Change Change %
-16.75 -1.82%

Updated:23 Oct, 2017, 15:41 PM IST

Research Report Detail

Brokerage
Analyst
Report Date Call Price@Call Target Price
Stop Loss
Current Status Time Horizon
Kotak
N/A
22-08-2017 Buy 907.35 1254.00
N/A
Open Long (1Y)
22-08-2018

Kotak maintains buy on FIEM Industries

Strong two wheeler dispatches by key customers is expected to improve FIEM's performance going ahead. Post slowdown in 2HFY17, two wheeler demand has made a strong comeback with volume growth at around 9% (FY18 YTD) on a relatively higher base. FIEM derives 89% of its revenues from the two wheeler segment and demand recovery in this segment is positive for the company. FIEM also benefits from faster than industry growth reported by its key customers. FIEM's top five customers accounting for around 81% of automotive segment revenues (around 76% of overall revenues) have reported 18% YoY growth in production volumes, so far in FY18 (April-July). FIEM's performance in the LED business (around 5.5% of company revenues) is expected to remain subdued in the near to medium term. Strong growth in the auto segment performance is expected to aid improvement in EBITDA margin. We retain BUY on the stock with unchanged price target of Rs1,254.

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