Thursday, April 28, 2016

FIEM Industires - fundamentally sound, capturing the 1 lakh Cr LED market

FIEM Industries - capturing the one lakh crore LED market successfully
FIEM is a reputed auto ancilliary company, quickly transforming itself into an LED company. 
The company plans to expand fast into LED generic lighting and LED lighting in automobiles. 
In the next 2 years, FIEM plans to have a revenue of Rs 600 Cr per year from LED business. 
At which point,  LED business shall become  more than 40 % of the total business. The 
fundamentals of the company  is  improving dramatically as shown in the numbers below. 
The company can give you a return CAGR of 30% over the next 3 - 5 yrs
Current market price: Rs 807/-
Industry Electric Equipment/ Auto ancilliary/ LED lighting
Chairman J K Jain Promoters stake 69.96%
Face Value(Rs) 10 FIIs 5.15%
Book Value(Rs) 210.04 DIIs 1.46%
Market Value(Rs Mn) 9584.73
P/E(x) TTM Dec 15 18.74
EPS(Rs) 42.76
Dividend Yield% 0.87
Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 TTM
Dec 15
Last 5 yrs
CAGR %
Sales ( Rs Cr ) 294 421 534 602 718 825
931
23
Op. Profit ( Rs Cr ) 27 38 68 70 88 102 118 30
Net Profit ( Rs Cr ) 11 11 21 27 37 42 51 31
ROA(%) 3.76   5.47   6.42   8.43   8.84  
   ROE(%) 11.01   17.46   19.20   22.16   21.30  
   ROCE(%) 12.85  19.95   17.84   22.80   22.97  
Cash Conversion Cycle (days)
8
16
16
11
10
Total Debt/Equity
1.17
1.25
0.87
0.65
0.55
Dividend (%) 25 30 40 60 70
Note: This is not a solicitation asking you to buy the shares. Consult your financial advisor if you are investing.