Focus Lighting & Fixtures Limited (FOCUS), a manufacturer and trader of innovative LED lights and fixtures, has become a market sensation in recent years. The company’s stock has skyrocketed over 1050% in just two years, leaving investors wondering if it’s still a good buy. Let’s delve into the company’s performance and see if it holds true to its glowing reputation.
A Bright Trajectory
FOCUS’s weekly chart paints a clear picture of its meteoric rise.
The stock has been on a consistent upward climb, fueled by several key factors:
- Debt Reduction: FOCUS has been diligently paying down its debt, making it a financially stronger and more attractive investment.
- Renowned Clientele: The company boasts an impressive clientele that includes marquee names like BMW, Arvind, Dune, IKEA, Reliance, Tata Motors, Guess, and Mercedes-Benz. This speaks volumes about the quality and reliability of FOCUS’s products.
- Improving Cash Flow: FOCUS’s net cash flow is steadily increasing, indicating strong financial health and the potential for future investments and dividends.
Quarterly Brilliance
Examining the quarterly results for September 2023, Focus Lighting & Fixtures Ltd continues to shine. Net sales have surged by 15.42%, reaching Rs 44.74 crore compared to Rs. 38.76 crore in September 2022. The quarterly net profit stands at Rs. 5.57 crore, showcasing a 7.53% increase from the previous year. EBITDA has also witnessed growth, reaching Rs. 8.94 crore, a 4.32% rise from Rs. 8.57 crore in September 2022. Despite a slight dip in earnings per share (EPS) from Rs. 4.40 to Rs. 4.26, the overall financial performance remains robust.
Reasons to be Optimistic
- Debt-Free Status: Focus Lighting & Fixtures Ltd has achieved a commendable status by becoming nearly debt-free, enhancing its financial stability and resilience.
- Anticipated Strong Quarter: The company is poised to deliver another impressive quarter, building on its historical performance and market momentum.
- Consistent Profit Growth: Over the last five years, the company has consistently achieved a remarkable profit growth of 30.4% CAGR, reflecting a solid track record.
- Improved Debtor Days: Focus Lighting & Fixtures Ltd has successfully reduced debtor days from 86.6 to 68.5 days, indicating efficient management of accounts receivable.
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