Focus Lighting & Fixtures Soars Over 1050% in 2 Years: A Golden Investment Opportunity?

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.

Disclaimer: (This information is provided solely for informational purposes. It is important to note that investing in the market or a business idea involves market risks. Before investing money as an investor/ owner/ partner, always consult an expert. DNP News Network Private Limited never advises to invest money on stocks or any specific business idea. We will not be liable for any financial losses.)

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