Buy Minda Corporation, target price Rs 160: ICICI Direct

ICICI Direct has buy call on Minda Corporation with a target price of Rs 160. The current market price of Minda Corporation Ltd. is Rs 127.75.

Time period given by analyst is one year when Minda Corporation Ltd. price can reach defined target.

Minda Corporation Ltd., incorporated in the year 1985, is a Small Cap company (having a market cap of Rs 3056.63 Crore) operating in Auto Ancillaries sector.


Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 566.30 Crore, down -29.33 % from last quarter Total Income of Rs 801.30 Crore and up 203.11 % from last year same quarter Total Income of Rs 186.83 Crore. Company reported net profit after tax of Rs 4.50 Crore in latest quarter.

Investment Rationale
MCL’s share price has grown at ~3% CAGR from Rs 110 as of mid- 2016, recording meagre outperformance over the Nifty Auto Index. The brokerage retains BUY rating amid healthy growth prospects over FY21-23E

Promoter/FII Holdings
Promoters held 70.9 per cent stake in the company as of June 30, 2020, while FIIs held 10.26 per cent, DIIs 7.47 per cent and public and others 11.4 per cent.