Multibagger alert: This small-cap automotive equipment manufacturing company nearly tripled its investor's wealth in the last two years!

An investment of Rs 1 lakh in the shares of this company two years ago would have turned to Rs 2.61 lakh today. 

Fiem Industries Ltd, a small cap company, has delivered multibagger returns to its shareholders in the last two years. During this period, the company’s share price jumped from Rs 573.95 on 01 September 2020 to Rs 1498.85 on 26 August 2022, an increase of 161% in the two-year holding period. An investment of Rs 1 lakh in the shares of this company two years ago would have turned to Rs 2.61 lakh today. 

In contrast, the S&P BSE SmallCap index, of which the company is a part, has rallied by 100.9%. In the last two years, the index has climbed from the level of 14,143.32 on 01 September 2020 to 28,415.89 on 26 August 2022. 

Fiem Industries Ltd is one of the leading manufacturers of automotive lighting and signalling equipment and rear-view mirrors. The company's product portfolio comprises lighting and signalling equipment and rear-view mirrors in the two-wheeler. In the four-wheeler segment, it produces lighting and signalling equipment and rear-view mirrors. Apart from this, the company also manufactures auxiliary lamps, warning triangles, reflex reflectors, LED lamps etc. 

In the recent quarter Q1FY23, on a consolidated basis, the company’s net revenue increased by 62% YoY to Rs 441.98 crore. Subsequently, owing to relatively slower growth in expenses, the bottom line increased by 157.27% YoY to Rs 29.11 crore. 

The company is currently trading at a TTM PE of 17.55x, as against the industry PE of 42.26x. In FY22, the company delivered an ROE & ROCE of 15.73% and 21.35%, respectively. 

Today, the scrip opened at Rs 1402.25 and has touched a high and low of Rs 1509.50 and Rs 1402.25, respectively. So far 5094 shares have been traded on the bourses. 

At 12.30 pm, the shares of Fiem Industries Ltd were trading at Rs 1497.30, a decrease of 0.1% from the previous closing price of Rs 1498.85 on BSE. The stock has a 52-week high & low of Rs 1,738.50 and Rs 800 respectively on BSE.