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

FIEM reported strong 3QFY18 results. Company's revenue grew by 22% YoY to Rs2,859mn. Auto segment growth came in robust, due to high volume growth by FIEM's top customers. In the LED business, revenues remained weak YoY. Company's EBITDA margin in the quarter was 12.5%, 130bps higher YoY (despite loss in LED luminaries business) and the same came as a positive surprise. FIEM's EBITDA margin has come down since 3QFY17. At 12.5%, EBITDA margin is back within the historical range of 12-13%. Supported by 37% growth in EBITDA, PAT in the quarter grew by 40% YoY to Rs126mn. Two wheeler growth is expected to be robust in FY19/FY20. Introduction of LED lamps in mass volume two wheeler segment is expected to give further impetus to revenue in the coming years. Through partnership and JV's, FIEM is looking at entering new product segments. We expect strong YoY growth in earnings to continue. We retain BUY on FIEM Industries with unchanged price target of Rs1,203.

Shares of FIEM INDUSTRIES LTD. was last trading in BSE at Rs.893 as compared to the previous close of Rs. 892.7. The total number of shares traded during the day was 564 in over 103 trades.

The stock hit an intraday high of Rs. 905 and intraday low of 893. The net turnover during the day was Rs. 506536.

Source : Equity Bulls

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