Hitesh Agarwal of Religare Securities told CNBC-TV18, "We are very positive on FIEM Industries, we at Religare Securities believe that 2017, especially the first half will be a year of stock picking. Considering the kind of uncertainty that is prevailing at the broader level in the market primarily because of the demonetisation which has happened and also the global uncertainty which has scrapped in over the last two to three months because of the US bond yields issue, because of Donald Trump coming into the picture and lot of money flowing out of the capital markets from emerging markets. So, I think bottom ups will be a much better way to look at the Indian story."
"It is where stock like FIEM come into the picture. So, the stock has done pretty well and we continue to believe that by notwithstanding the short-term pressure which the business might see because of demonetisation, because the company is primarily catering to the original equipment manufacturer (OEMs), it is into the signalling of rare view mirror and signalling of two-wheelers and four-wheelers, passenger vehicles and all this segment," he said.
"So, notwithstanding the first quarter of the next calendar year barring that aspect, if we see, I think this company is expected to do pretty well."
"We anticipate almost 23 percent CAGR growth over the next couple of years for this company to come in. Considering the kind of valuations and return ratios that this company has, we think of 20-25 percent upside from current level. Of course, from the time the report has been released, the stock has already moved up a little bit with the market really recovering quite a bit almost at 300 point rally in the last 3-4 days. So, the stock has also moved up, but we still believe that this is a very good stock to own for 2017."
He further said, "Currently, we have a Rs 1,315 odd target on this stock, but I think this stock has a lot of potential and can do much better even beyond that, so we have a buy on that."
"Buy rating on Castrol India for 2017 and beyond with an upside of almost 20 percent from the current price."