FIEM Industries Ltd - Result Update - Kotak PCG Research

FIEM reported robust revenue growth during the quarter led by strong growth in two wheeler demand. Revenues for the quarter grew by 19% YoY to Rs2,907 mn. EBITDA margin for the quarter was lower YoY, partly impacted by weak LED luminaries' segment performance; however EBITDA margin improved QoQ supported by strong growth in automotive segment. While EBIDTA declined by 1.6% YoY, PAT was lower by 10% YoY. Strong revenue growth during the quarter was encouraging; though improvement in operating margins was below expectation. Revenue growth in the auto segment is expected to stay robust as two wheeler segment is expected to grow strongly in the near to medium term. EBITDA margin performance is expected to improve gradually for the company. LED business is expected to remain under pressure in the near to medium, but the company is planning various initiatives which are likely to yield results over the longer term. 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.961 as compared to the previous close of Rs. 962.5. The total number of shares traded during the day was 4287 in over 290 trades.

The stock hit an intraday high of Rs. 988.2 and intraday low of 954.8. The net turnover during the day was Rs. 4178059.

Source : Equity Bulls

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