Fiem Industries Limited

Consumer Cyclical — Auto Parts · NSE

₹1,906.00+₹80.50 (+4.41%)

DalalBaazaar Score

73 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by high debt relative to equity, small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

The 60-second version of Fiem Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Fiem Industries Limited, together with its subsidiaries, manufactures and supplies automotive components in India and internationally. It operates in two segments, Automotive and Others.

IndustryAuto Parts

SectorConsumer Cyclical

Employees2,682

Annual revenue₹2,792 Cr

How does it make money?

Turns over ₹2,792 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹15 left at the operating level before interest, tax and depreciation. Each of its 2,682 employees supports ₹1.04 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.04 Cr

Who are its competitors?

The closest listed comparisons in its industry are BOSCH LIMITED, MARUTI SUZUKI INDIA LTD., TVS MOTOR COMPANY LTD, EICHER MOTORS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 26.4%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 21.0% against a peer median of 23.0% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE23.0%

What is the outlook?

4 analysts covering the stock expect revenue to grow about 16.4% and earnings to grow about 20.7% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+16.4%

Est. earnings growth+20.7%

Analysts4

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +52% while net margin moved +20% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+52%

Margin effect+20%

DalalBaazaar Score

73/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.48 — historically steadier than the index
✗ Small Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✓ Profits have been consistent from year to year

Quality vs. Valuation

Company Quality

76/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

77/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

19.1x

3Y Median

24.2x

40 monthly readings · mean 24.1x · range 16.6x–30.6x

Sector Median

45.7x

median of 4 sector peers

🟢Current valuation is approximately 21% below its 3y median of 24.2x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 58% below the peer median of 45.7x.

vs. its own history

Cheap

24.2x median over 40 months · -21%

vs. sector peers

Cheap

45.7x median of 4 peers · -58%

vs. generic bands

Fair

15x–35x

EV/EBITDA

11.5x

PEG

0.86

What's Good / What's Bad

🟢 What's Going Well3

Return on capital is rising
ROCE has improved from 23.9% to 26.4%.
High return on capital employed
ROCE of 26.4% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

4 items require attention · 4 high

🔴Debt has risen sharplyFinancial
Total debt is up 175% over 3 years, from ₹24 Cr to ₹66 Cr.
🔴High leverageFinancial
Debt/Equity of 5.39x — earnings must service borrowings before shareholders see anything.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Receivables growing faster than salesFinancial
Receivables up 175% against revenue up 52% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 26.4% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Priced below its own history
The stock trades 21% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 58% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 5.39x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 175% against revenue up 52%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
4 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 11% a year✓ 15.0% CAGR
Latest reported year was 18.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 13%✓ 15.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹32 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 23%✓ 26.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

7 good · 3 neutral · 1 weak

Market Cap

₹5,017 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

19.1x

Fair

Fairly valued against the generic band

P/B Ratio

4.13x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹99.91

Profitable

Profitable on a per-share basis

ROE

21.0%

Strong

Strong capital efficiency

ROCE

26.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

5.39x

High

High leverage

Revenue Growth (YoY)

18.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

12.8%

Healthy

Profits growing at a healthy clip

Dividend Yield

2.10%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹32 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

14.3x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

11.0%

Average

Average margins

Net Margin

9.0%

Average

Average bottom-line conversion

Current Ratio

2.61

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.48

Defensive

Steadier than the market

52W Range Position

21%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1845.4 / 2048.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

45.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,834 Cr	₹2,015 Cr	₹2,405 Cr	₹2,792 Cr	+15.0%
EBITDA	₹260 Cr	₹285 Cr	₹339 Cr	₹418 Cr	+17.2%
EBITDA Margin	14.2%	14.1%	14.1%	15.0%	—
PAT (Net Profit)	₹140 Cr	₹166 Cr	₹205 Cr	₹256 Cr	+22.3%
EPS	₹53.13	₹62.96	₹77.86	₹97.11	+22.3%
ROE	18.4%	18.7%	19.7%	21.0%	—
ROCE	23.9%	24.1%	25.5%	26.4%	—
Total Debt	₹24 Cr	₹23 Cr	₹22 Cr	₹66 Cr	+40.1%
Free Cash Flow	₹76 Cr	₹51 Cr	₹103 Cr	₹32 Cr	-25.2%

🟢 Revenue has grown at 15.0% a year over 3 years.

🟢 EBITDA has grown at 17.2% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 15.0% over 3 years.

🟢 PAT (Net Profit) has grown at 22.3% a year over 3 years.

🟢 EPS has grown at 22.3% a year over 3 years.

🟢 ROE has risen from 18.4% to 21.0% over 3 years (+2.7 pts).

🟢 ROCE has risen from 23.9% to 26.4% over 3 years (+2.5 pts).

🔴 Total Debt has grown at 40.1% a year over 3 years.

🔴 Free Cash Flow has shrunk at 25.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,701 Cr

Total Liabilities

₹486 Cr

Cash & Equivalents

₹279 Cr

Operating Cash Flow

₹161 Cr

Capex

-₹130 Cr

Shareholding (proxy)

Institutional Holding

12.6%

Insider Holding

54.5%

Corporate Actions

Dividend Rate

₹40

Ex-Dividend Date

24 Jul 2026

Analyst Consensus

Recommendations

3 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹2,835

+48.7% vs CMP

Target Range

₹2,700 – ₹3,050

Peer Comparison

Company	P/E	ROE
BOSCH LIMITED	56.9x	15.9%
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TVS MOTOR COMPANY LTD	56.8x	35.8%
EICHER MOTORS LTD	34.7x	23.0%

Recent News

2 positive1 mixed3 general

FIEMIND Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Fiem Industries Limited (FIEMIND.BO) Stock Price, News, Quote & History

Yahoo! Finance Canada, 01 Oct

Three Days Left To Buy Fiem Industries Limited (NSE:FIEMIND) Before The Ex-Dividend Date

Simply Wall Street, 20 JulCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Fiem Industries guides 15-20% revenue growth, ~14% margin for FY27

scanx.trade, 12 Aug

Fiem Industries consolidated net profit rises 12.80% in the June 2026 quarter

Business Standard, 12 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Fiem Industries Share: Automotive Lighting Buy in 2026?

Univest, 18 Aug

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Growth · Profitability · Valuation

MiddlingFinancial Health · Risk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 4 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑