Buy Minda Corporation, target price Rs 325: Axis Securitie

Axis Securities has buy call on Minda Corporation with a target price of Rs 325. The current market price of Minda Corporation is Rs 292.55.

Minda Corporation, incorporated in the year 1985, is a Small Cap company (having a market cap of Rs 6990.68 Crore) operating in Auto Ancillaries sector.

Minda Corporation key Products/Revenue Segments include Other Auto Components, Other Operating Revenue, Scrap, Duty Drawback, Royalty Income and Job Work for the year ending 31-Mar-2023.


Financials
For the quarter ended 30-06-2023, the company has reported a Consolidated Total Income of Rs 1076.44 Crore, down -.05 % from last quarter Total Income of Rs 1076.94 Crore and up 6.11 % from last year same quarter Total Income of Rs 1014.46 Crore. Company has reported net profit after tax of Rs 46.58 Crore in latest quarter.

Investment Rationale
With a strong order book position and the management’s confidence in outpacing industry growth (organic/non-organic), the brokerage revises its Revenue/EBITDA/PAT estimate upwards and model a CAGR of 19%/26%/20% over FY23-26E. (In Feb’23, the company acquired a 15.7% stake in Pricol from the open market for Rs 400 Cr and has filed a CCI application for increasing a stake up to 24.5%; the matter remains pending. Return on the capital allocated towards this investment, and future strategic intent will be the major near-term trigger/risk for the share price trajectory).

Promoter/FII Holdings
Promoters held 64.73 per cent stake in the company as of 30-Jun-2023, while FIIs owned 5.74 per cent, DIIs 11.88 per cent.