Buy Minda Industries, target price Rs 1106: Anand Rathi

Anand Rathi has buy call on Minda Industries with a target price of Rs 1106. The current market price of Minda Industries Ltd. is Rs 880.35. Time period given by analyst is one year when Minda Industries Ltd. price can reach defined target.

Minda Industries Ltd., incorporated in the year 1992, is a Mid Cap company (having a market cap of Rs 24908.96 Crore) operating in Auto Ancillaries sector.

Minda Industries Ltd. key Products/Revenue Segments include Electronic Components, Sale of services, Other Operating Revenue for the year ending 31-Mar-2021.



Financials
For the quarter ended 31-12-2021, the company reported a Consolidated Total Income of Rs 2193.91 Crore, up 2.76 % from last quarter Total Income of Rs 2135.05 Crore and up 21.09 % from last year same quarter Total Income of Rs 1811.73 Crore. Company reported net profit after tax of Rs 98.68 Crore in latest quarter.

Investment Rationale
Consistent growth in its order book and robust demand for 2- and 4- wheelers led to Minda Industries’ strong revenue. The recent commissioning of assembly lines for alloy wheels on further orders augur well for its growth. Supply constraints are expected to normalise in ensuing quarters; accordingly the brokerage expects strong demand from 2- and 4- Ws. It upgrades rating to Buy at a TP of Rs1,106 (40x FY24e)

Promoter/FII Holdings
Promoters held 67.47 per cent stake in the company as of 31-Mar-2022, while FIIs owned 9.77 per cent, DIIs 13.22 per cent.