Fiem Inds surges after signing MoU with Japanese firms

Fiem Industries jumped 5.17% to Rs 940 at 12:46 IST on BSE after the company said it has signed a MoU with two Japanese firms for establishing a joint venture company in India.

The announcement was made during market hours today, 4 December 2017.

Meanwhile, the S&P BSE Sensex was up 79.41 points or 0.24% at 32,912.35. The S&P BSE Small-Cap index declined 0.09%, underperforming the Sensex.

On the BSE, 5,865 shares were traded on the counter so far as against average daily volumes of 1,495 shares in the past one quarter. The stock had hit a high of Rs 952.90 and a low of Rs 900.10 so far during the day. The stock had hit a 52-week high of Rs 1,229.30 on 17 January 2017 and a 52-week low of Rs 821.40 on 31 May 2017.

The stock had underperformed the market over the past one month till 1 December 2017, sliding 4.59% compared with the Sensex's 2.28% fall. The stock had also underperformed the market over the past one quarter, declining 5.63% as against the Sensex's 2.95% rise. The scrip had also underperformed the market over the past one year, sliding 20.76% as against the Sensex's 23.62% rise.

The small-cap company has equity capital of Rs 13.16 crore. Face value per share is Rs 10.

Fiem Industries signed a Memorandum of Understanding (MoU) with Aisan Industry Co., Japan and Toyota Tsusho Corporation, Japan for establishing a joint venture company in India to manufacture fuel pump module and IC connector assembly for two-wheelers and three-wheelers.

Fuel pump module will become mandatory for two-wheelers and three-wheelers with effect from April 2020 under Bharat Stage VI (BS VI) regime. This is an advanced emission control system product, which will have huge market in India under BS VI norms, Fiem said in a statement.

Fiem Industries is scheduled to release Q2 September 2017 results today, 4 December 2017. The company's net profit fell 9.9% to Rs 10.34 crore on 19.8% growth in net sales to Rs 288.55 crore in Q1 June 2017 over Q1 June 2016.

Fiem Industries is one of the leading manufacturers of automotive lighting & signaling equipment and rear view mirror.

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