Shares of FIEM Industries surged over 4% in trade today, September 3, after brokerage firm Kotak Securities initiated coverage on the stock with a Buy rating, expecting stock to rally 39% from current price. Shares of FIEM Industries surged over 4% to hit a day’s high of Rs 1,615 on the NSE today, just shy from its record high of Rs 1,618.95. As of 10:45 AM, FIEM Industries share price was at Rs 1,610, up Rs 72 or 4.7% on the NSE.
Kotak Securities has set a target price of ₹2,140 per share, indicating a 39% upside from the current market price of ₹1,537 (September 2).
Fiem Industries, established in 1989, is a key supplier to two-wheeler original equipment manufacturers (OEMs) and has a robust presence in the aftermarket segment. The company’s diversified product portfolio includes sheet metal parts and plastic components, catering to both two-wheeler and four-wheeler OEMs.
Kotak Securities highlighted Fiem’s strong position in the industry, noting that the company is well-placed to benefit from the recovery in the two-wheeler market, which has been gaining momentum post-pandemic. The brokerage expects the two-wheeler industry to show healthy volume growth over the FY25-FY27 period, supported by increased consumer demand and government spending.
Fiem’s foray into the four-wheeler LED lighting segment also presents new growth opportunities, further enhancing its revenue streams. The company has been outperforming the industry average, with a compound annual growth rate (CAGR) of 11% in revenue over the past decade, surpassing the two-wheeler industry’s CAGR during the same period.
The company’s focus on expanding its portfolio with higher content per vehicle, especially with the increasing adoption of LED technology in the automotive industry, is expected to boost both earnings and revenue growth. Additionally, Fiem’s long-standing relationships with key industry players, including Honda Motorcycle, TVS Motors, Yamaha, and Suzuki, strengthen its position in the market.
Kotak Securities believes that Fiem Industries’ strong balance sheet, healthy return ratios, and strategic diversification into the smart meter and electric vehicle (EV) charging sectors will support sustained financial performance in the future. The brokerage’s positive outlook is based on the expectation that Fiem will continue to outperform the two-wheeler industry growth, driven by its strategic initiatives and expanding market presence.