Hi Rupesh,
I have studied this company recently in detail – not much on the valuations still, but much on the business/sector part. Auto sector has great growth opportunities in coming years. LED business in which they have diversified is also lucrative. Some worries/questions –
—> How much proportion of total Honda/TVS/suzuki orders for auto parts are supplied by Fiem? I find 44% of our revenues from sale of auto parts come from Honda. What importance do we hold to Honda? Are we just another fragmented supplier to these companies – with low pricing power.
—> Company’s LED business (street and house) is great- but govt driven. EESL will buy from these companies by way of tenders. Again no pricing power. Again how many players in this segment at present needs to be found out.
Disc: Not invested.
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