FIEM Industries Ltd - Result Update - BUY - TP Rs.1203

- FIEM's 2QFY18 results witnessed improvement QoQ, supported by strong growth in two wheeler demand. FIEM's key customers continue to witness strong growth in sales, thereby benefitting FIEM. LED luminaries business suppressed the performance to some extent. Overall revenues grew by 12% YoY and QoQ. EBITDA margin was lower YoY but improved QoQ. PAT in the quarter grew by 1% YoY and 38% QoQ. We expect the company's performance in the auto segment to remain robust in 2HFY18/FY19. LED business is expected to remain under pressure in the near to medium term. In the past two quarters, FIEM has reported sequential improvement in financial performance. From 3QFY18, we expect the company to witness YoY growth in earnings. We retain BUY on the stock with revised price target of Rs1,203 (earlier 1,254), valuing the stock at a PE of 18x on FY19E earnings.

Shares of FIEM INDUSTRIES LTD. was last trading in BSE at Rs.952.75 as compared to the previous close of Rs. 947.8. The total number of shares traded during the day was 558 in over 60 trades.

The stock hit an intraday high of Rs. 955 and intraday low of 946. The net turnover during the day was Rs. 530589.

Source : Equity Bulls

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