The share price of the small-cap company rose by 4 percent to hit its 52-week high of Rs 2587.95 per share from its previous close of Rs 2487.75 following the company’s announcement that it would be issuing bonus shares
Fiem Industries Ltd announced the issuance of bonus shares at a 1:1 ratio, which is one equity share for every existing share held by investors, with the record date set for February 28, 2024, in its filing.
Looking at their Net revenue decreased 3 percent year on year, from Rs 525 crores in Q2FY23 to Rs 509 crores in Q2FY24. On a quarterly basis, their revenue fell 7.1 percent from Rs 475 crore in Q1FY24 to current levels.
In addition, the net profit rose 4.8 percent year on year, from Rs 41 crores in Q2FY23 to Rs 43 crores in Q2FY24. Their net profit rose 19 percent sequentially from Rs 36 crores in Q1FY24 to current levels.
Fiem Industries Ltd is a small-cap company with a market capitalization of Rs 3,300 Crores, the share price of the company rose by 32 percent in the last six months and 70 percent in the last year.
The company has a low price-to-earnings ratio of 22, with a zero debt-to-equity ratio, a return on equity of 19 percent, a return on capital employed of 26 percent, and a net profit margin of 7.5 percent.
The promoters own 66.5 percent of the company, the general public owns 30.4 percent, foreign institutional investors own 2.9 percent, and domestic institutional investors own 0.09 percent.
Fiem Industries Ltd was founded by Mr. J.K. Jain and was first incorporated in India as Rahul Auto Private Limited on February 6, 1989, in New Delhi. Manufacturing and supplying automotive parts, such as lighting, is its line of business.
Written by Sriram KV
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