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Last Updated on: 18 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Fiem Industries Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 16, 2024, 11:51 pm

Market Cap 4,476 Cr.
Current Price 1,701
High / Low1,790/822
Stock P/E25.0
Book Value 337
Dividend Yield1.18 %
ROCE26.6 %
ROE20.1 %
Face Value 10.0
PEG Ratio1.68

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Fiem Industries Ltd

Competitors of Fiem Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Industry Average0 Cr0000%0.59%0.49%0

All Competitor Stocks of Fiem Industries Ltd

Quarterly Result

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales374358421275419389490445525442436475509
Expenses322317367244368342425388453382376414441
Operating Profit53425531514765567260606168
OPM %14%12%13%11%12%12%13%13%14%14%14%13%13%
Other Income-3120111123544
Interest3332223222220
Depreciation14141614141318161616161413
Profit before tax33263815363245405745474858
Tax %25%25%30%26%26%27%25%27%28%30%19%26%25%
Net Profit24202811262334294132383643
EPS in Rs18.5915.0821.298.2820.0117.6425.6222.1230.9824.2628.9026.9833.04

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales5356057198249871,0151,2401,4491,3791,2211,5721,8481,862
Expenses4675356317218598971,0991,2921,2231,0871,3781,5991,613
Operating Profit687088103127118141157157134194249249
OPM %13%12%12%12%13%12%11%11%11%11%12%13%13%
Other Income00111-9811031116
Interest21131412162323221812976
Depreciation17182231333944495357596360
Profit before tax30395361794682878765129189199
Tax %30%30%29%30%28%28%36%35%9%28%26%26%
Net Profit2128374257335356754794140149
EPS in Rs17.6723.1731.1635.5147.9325.1139.9442.2956.6635.4871.55106.26113.18
Dividend Payout %17%17%19%20%17%32%23%28%23%45%28%28%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)33.33%32.14%13.51%35.71%-42.11%60.61%5.66%33.93%-37.33%100.00%48.94%
Change in YoY Net Profit Growth (%)0.00%-1.19%-18.63%22.20%-77.82%102.71%-54.95%28.27%-71.26%137.33%-51.06%

Fiem Industries Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:11%
5 Years:7%
3 Years:18%
TTM:14%
Compounded Profit Growth
10 Years:16%
5 Years:24%
3 Years:50%
TTM:22%
Stock Price CAGR
10 Years:17%
5 Years:56%
3 Years:39%
1 Year:82%
Return on Equity
10 Years:16%
5 Years:16%
3 Years:19%
Last Year:20%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital121212121313131313131326
Reserves156185215261397436464512556629748861
Borrowings13411911714022515917112777462423
Other Liabilities131139157246234327314269276361268308
Total Liabilities4334555016598709359639209221,0491,0531,218
Fixed Assets293313334416479554564591547508494496
CWIP10512671103155
Investments000086192521217700
Other Assets139142162231298355362308351463554717
Total Assets4334555016598709359639209221,0491,0531,218

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 7177821224612512120713692131135
Cash from Investing Activity -28-41-59-108-198-44-80-46-15-7439-69
Cash from Financing Activity -47-36-22-13173-102-38-118-57-61-55-43
Net Cash Flow-401121-2124363-4211523

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow68.00-64.00-31.00-14.00-13.00-107.00-18.00-14.0030.0057.00148.00225.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days423938444342372024412835
Inventory Days483538426469605657685760
Days Payable7465659694108767383975356
Cash Conversion Cycle16911-10133204-3123139
Working Capital Days-1-4-3-12359-9-5122337
ROCE %17%22%22%25%16%16%17%16%12%21%27%27%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters66.56%66.56%66.56%66.56%66.56%66.56%66.56%66.56%66.56%66.56%66.56%58.96%
FIIs9.74%10.45%10.78%4.00%5.55%5.97%3.92%3.94%2.90%2.32%1.99%3.41%
DIIs0.35%0.19%0.21%0.98%0.82%0.93%0.80%0.81%0.86%0.80%1.65%3.18%
Public23.35%22.80%22.45%28.46%27.06%26.51%28.73%28.68%29.68%30.30%29.78%34.45%
No. of Shareholders33,67939,09039,98336,08934,89237,14440,36942,17047,96650,28763,85366,478

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Motilal Oswal Nifty Microcap 250 Index Fund4,3060.160.76102024-10-1642960%
Groww Nifty Total Market Index Fund100.010102024-10-160%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)62.96106.2671.5535.4856.66
Diluted EPS (Rs.)62.96106.2671.5535.4856.66
Cash EPS (Rs.)85.29154.46117.2679.14100.22
Book Value[Excl.RevalReserv]/Share (Rs.)336.98578.40488.02432.64399.19
Book Value[Incl.RevalReserv]/Share (Rs.)336.98578.40488.02432.64399.19
Revenue From Operations / Share (Rs.)770.821404.321194.74927.941048.22
PBDIT / Share (Rs.)108.15197.15149.36104.10120.52
PBIT / Share (Rs.)85.87148.97104.5360.6180.09
PBT / Share (Rs.)84.75143.3398.0049.3566.00
Net Profit / Share (Rs.)63.00106.2972.4235.6559.79
NP After MI And SOA / Share (Rs.)62.96106.2671.5535.4856.66
PBDIT Margin (%)14.0314.0312.5011.2111.49
PBIT Margin (%)11.1310.608.746.537.64
PBT Margin (%)10.9910.208.205.316.29
Net Profit Margin (%)8.177.566.063.845.70
NP After MI And SOA Margin (%)8.167.565.983.825.40
Return on Networth / Equity (%)18.6818.3714.668.2014.19
Return on Capital Employeed (%)24.1123.9119.3312.1416.18
Return On Assets (%)13.5913.278.985.068.10
Long Term Debt / Equity (X)0.000.000.010.030.11
Total Debt / Equity (X)0.000.000.030.030.11
Asset Turnover Ratio (%)1.791.761.591.321.46
Current Ratio (X)2.462.281.541.231.06
Quick Ratio (X)1.741.530.990.790.57
Inventory Turnover Ratio (X)6.546.216.495.985.85
Dividend Payout Ratio (NP) (%)23.8218.8222.368.4524.70
Dividend Payout Ratio (CP) (%)17.5912.9513.743.7914.41
Earning Retention Ratio (%)76.1881.1877.6491.5575.30
Cash Earning Retention Ratio (%)82.4187.0586.2696.2185.59
Interest Coverage Ratio (X)96.8834.9122.8811.778.98
Interest Coverage Ratio (Post Tax) (X)57.4319.8212.095.305.50
Enterprise Value (Cr.)2795.121875.531137.29643.76341.80
EV / Net Operating Revenue (X)1.381.010.720.520.24
EV / EBITDA (X)9.827.235.794.702.15
MarketCap / Net Operating Revenue (X)1.481.110.750.590.24
Retention Ratios (%)76.1781.1777.6391.5475.29
Price / BV (X)3.382.701.841.290.63
Price / Net Operating Revenue (X)1.481.110.750.590.24
EarningsYield0.050.060.070.060.22

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Fiem Industries Ltd as of October 18, 2024 is: ₹1,713.41

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of October 18, 2024, Fiem Industries Ltd is Undervalued by 0.73% compared to the current share price ₹1,701.00

Intrinsic Value of Fiem Industries Ltd as of October 18, 2024 is: ₹1,967.70

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of October 18, 2024, Fiem Industries Ltd is Undervalued by 15.68% compared to the current share price ₹1,701.00

Last 5 Year EPS CAGR: 14.84%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 19.83%, which is a positive sign.
  2. The stock has a low average Working Capital Days of 4.58, which is a positive sign.
  3. The company has higher reserves (451.67 cr) compared to borrowings (113.50 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (282.92 cr) and profit (88.15 cr) over the years.
  1. The stock has a high average Cash Conversion Cycle of 12.08, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Fiem Industries Ltd:
    1. Net Profit Margin: 8.17%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 24.11% (Industry Average ROCE: 0.59%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 18.68% (Industry Average ROE: 0.49%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 57.43
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.74
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 25 (Industry average Stock P/E: 0)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

FIEM Industries Ltd. is a Public Limited Listed company incorporated on 06/02/1989 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L36999DL1989PLC034928 and registration number is 034928. Currently Company is involved in the business activities of Manufacture of parts and accessories for motor vehicles. Company’s Total Operating Revenue is Rs. 1572.26 Cr. and Equity Capital is Rs. 13.16 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Auto Ancl - Equipment LampD�5, Mansarover Garden, New Delhi Delhi 110015investor@fiemindustries.com
http://www.fiemindustries.com
Management
NamePosition Held
Mr. J K JainChairman & Managing Director
Mr. Rahul JainJoint Managing Director
Mr. Rajesh SharmaJoint Managing Director
Mr. Kashi Ram YadavWhole Time Director
Ms. Aanchal JainWhole Time Director
Mr. Vineet SahniDirector & CEO
Mr. Mohan Bir SahniIndependent Director
Mr. S K JainIndependent Director
Mr. V K MalhotraIndependent Director
Mr. Jawahar ThakurIndependent Director
Mr. Ashok Kumar SharmaIndependent Director
Ms. Shobha KhatriIndependent Director
Mr. Pawan Kumar JainIndependent Director

FAQ

What is the latest fair value of Fiem Industries Ltd?

The latest fair value of Fiem Industries Ltd is ₹1713.41.

What is the Market Cap of Fiem Industries Ltd?

The Market Cap of Fiem Industries Ltd is 4,476 Cr..

What is the current Stock Price of Fiem Industries Ltd as on 18 October 2024?

The current stock price of Fiem Industries Ltd as on 18 October 2024 is ₹1,701.

What is the High / Low of Fiem Industries Ltd stocks in FY 2024?

In FY 2024, the High / Low of Fiem Industries Ltd stocks is 1,790/822.

What is the Stock P/E of Fiem Industries Ltd?

The Stock P/E of Fiem Industries Ltd is 25.0.

What is the Book Value of Fiem Industries Ltd?

The Book Value of Fiem Industries Ltd is 337.

What is the Dividend Yield of Fiem Industries Ltd?

The Dividend Yield of Fiem Industries Ltd is 1.18 %.

What is the ROCE of Fiem Industries Ltd?

The ROCE of Fiem Industries Ltd is 26.6 %.

What is the ROE of Fiem Industries Ltd?

The ROE of Fiem Industries Ltd is 20.1 %.

What is the Face Value of Fiem Industries Ltd?

The Face Value of Fiem Industries Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Fiem Industries Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE