Simple business analysis: FIEM Ind. ✔Company is a manufacturer of Automotive lighting (conventional lamps and LED) , rearview mirrors, plastic moulded parts and signaling equipments for 2 & 4 wheelers. Hope u like it. @AimInvestments ✌✌
Segmentwise sales break-up: ✅Auto segment: 99.09% ✅LED luminaries and IPIS: 0.09%
Revenue break-up (Auto segment): ✅2 wheelers: 96% ✅ 4 wheelers: 4%
Revenue break-up (Auto seg prod mix) ✅Automotive lamps: 40% ✅Auto LED lamps: 27% ✅ Realview mirror: 12% ✅ Plastic moulded parts: 10% ✅Others: 11%
Customers (2 wheelers) and contribution ✅Honda motorcycles: 35.45% ✅TVS: 26.3% ✅Yamaha India: 12.7% ✅Suzuki: 8.1% ✅Royal Enfield: 3.5% ✅Replacement: 6.6% ✅Others: 7.3%
Simple analysis: 🔺️Com can grow 10-12% in its traditional bus of Non EV. 🔺️Com supplies to all big OEMs except Hero and Bajaj. 🔻Under 125cc brands will be replaced soon by EV manufacturers. That's the risk. 🔻% revenue is from under 125cc brands need to be watched out for.
Future growth drivers: ✅Added EV manufacturers ✅Convert to LED from Hologen lights
EV customer: ✅Ola: Sole supplier ✅Okinawa: Exclusive supplier for 2 models ✅Ampher: Mirrors and Winkers ✅Hero Electric: All Lamps ✅Electrotherm: Sole supplier Note: Company supplies to top 3 OEMs out of 5. Ola recently started sales. Ola can be easily in top 3 OEMs.
Top EV manufacturers: Ola is not there as this data is from Jan to Nov 21. Ola started supplying from Dec 21.
EV revenue growth: ✅Current year sales expected only 35 cr from EV. Estimated 2-3% of sales. ✅Does not matter who wins the EV race FIEM will be the winner as top 3-4 OEMs are its customers. ✅ Mgmt has guided for 20-25% growth at company level.
Convert to LED ✅ 67% Revenue comes from lights ✅LED and hologen light share is 40-60% ✅Mgmt has plans to take LED 60-40% ✅As LED shares grow Rev will increase significantly as LED kit prices are almost 3-4x more expensive. ✅If EV sales grow it can go even further to 70-30
Management guidance: ✅Company can grow its sales to 2000 cr and even further without much capax. ✅Sales can grow at 20-25% ✅OPM will be around 11-12% ✅Company has maintained its OPM at 11-12% from last 10-12 years. So it gives comfort. ✅ Long term play on EV theme.
EV two-wheelers sales growth in 2021: EV 2 wheelers sold in 2020: 100736 units EV 2 wheelers sold in 2021: 233971 units Growth: 132% Ola delivered only 111 units in Dec,2011. Expecting that 2022 numbers wud put it into top 3 companies considering order book and prod Capacity
Q3'22 results..Ok type. Revenue growth: 8.5% YoY Maintain EBITDA: 12% PAT growth: 15% Note: I really like the EBITDA maintenance ability of this company. 👌
Electric 2-wheeler customers...do not why OLA missing. @AimInvestments
