Micro Cap Value Pick: FIEM Industries

FIEM Industries is leading manufacturer of a range of automotive lighting products and signalling equipment, LED headlamps, other LED lamps and rear-view mirrors across two, three, four-wheelers and commercial vehicles. With a history of over 45 years, Company has 9 manufacturing facilities (4 in South India, 4 in North India and 1 in Gujarat ).

Products Portfolio Includes :

  • Auto Segments: Head lamp, Tail Lamp , Blinker lamps, Fog lamp ,Rare View Mirror, Sheet metal part, plastic module parts
  • LED Segment : LED bulbs, LED Tube, LED Street Light , Solar base LED Street Light, Integrated passengers information system with LED Display

Company has more than 50 top OEM Clients across the Segment which includes

  • 2-Wheeler Customers : Honda, TVS , Suzuki, Yamaha, Hero , Royal Enfield ,Mahindra , Piaggio , Harley Davison and more
  • 4-Wheeler Customers : maruti Suzuki, tata motors, Hundai, Honda, Skoda, Ashok Leyand, Volvo, Mahindra , VST , Eicher,Atul , JCB and More
  • LED Customers : Indian Railways, Samsung, Ministry of Shipping , Indian oil, RCF and more

Plastic Module Business: Plastic module is integrated part of Auto lamps and rear view mirror. FIEM has 450 latest injection moulding machines in its six plant capable of making parts from 20grm to 2.5kg.

LED Display: Integrated passengers information(IPIS) with LED provide real time information to passengers. Company got approval from Ministry of Railways- Research Design and standard for its IPIS. Company has installed LED system in many place for IR. Company is look for opportunities in Railways, Centre and State govt , Metro, overseas market.

  • Stock Facts
  • M-cap: INR 680 cr
  • CMP: 529 INR (10th Jan 2019)
  • EPS: 24.06 INR
  • PE: 12.82
  • Book Value: 350 INR
  • Dividend Yield: 1.74 %
  • Share Capital 13 cr of FV 10 .
  • Promoter Share holding : 63.59%.
  • FII/DII Share Holdings: 22.15%

Opportunities:

  • Even after Electric vehicles new Era , use of LED light , Signaling Light and Rear View Mirror is essential.
  • Debt reduced from 0.54 in FY17 to 0.35 in FY18
  • LED lamination segment shown significant growth with revenue of 6.8cr vs. 2.8 cr in same quarter last year
  • Entered into joint venture with Asian Industry Company Limited (Japan) and Toyota Tsusho India Private Limited and set-up a Joint Venture company to manufacture of fuel pump modules and integrated circuit connectors for domestic two and three-wheelers.
  • Paying good dividend since listing in 2007 with 9 INR dividend in 2018.
  • Stock corrected from 1027 to 500, on chart created double bottom at 509. So one can add this stock with 500 SL and upside of 30-40% this year.

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Disclaimer : This article is just for information purpose. One should consult financial advisor before doing any investment

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