Fiem Industries - BUY - TP Rs.1,254 - Kotak

FIEM's performance iS expected to improve in FY18 on the back of expected healthy two wheeler industry growth and strong performance by FIEM's key clients. In the auto business (accounted for 94% of FIEM's FY17 revenues), we expect strong revenue growth over FY17-FY19E. Domestic two wheeler industry has shown initial signs of strong growth in FY18. FIEM's top two clients - Honda Motorcycle India Limited (HMSI) and TVS Motors - have reported robust volume growth in April/May 2017 and that augurs positively for FIEM LED business (6% of FIEM's FY17 revenues) performance is expected to remain weak in the near to medium term. EBITDA margin is expected to witness gradual improvement in FY18 / FY19. We retain BUY on the stock with unchanged price target of Rs1,254.

Shares of FIEM INDUSTRIES LTD. was last trading in BSE at Rs.928 as compared to the previous close of Rs. 864.05. The total number of shares traded during the day was 8389 in over 539 trades.

The stock hit an intraday high of Rs. 940 and intraday low of 856.65. The net turnover during the day was Rs. 7684764.

Source : Equity Bulls

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