Buy Minda Industries, target price Rs 960: Emkay Global

Emkay Global has buy call on Minda Industries with a target price of Rs 960. The current market price of Minda Industries Ltd. is Rs 904.45. 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 25484.48 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 30-06-2021, the company reported a Consolidated Total Income of Rs 1608.69 Crore, down -28.41 % from last quarter Total Income of Rs 2247.17 Crore and up 282.26 % from last year same quarter Total Income of Rs 420.84 Crore. Company reported net profit after tax of Rs 29.90 Crore in latest quarter.

Investment Rationale
The brokerage retains Buy with a DCF-based Dec’22 TP of Rs960. Key risks: delays in macro/automobile sector recovery, increase in competitive intensity, regulatory changes allowing cheaper imports, supply constraints at company and customer-end, slower premiumization rate and adverse currency rates.

Promoter/FII Holdings
Promoters held 67.47 per cent stake in the company as of 30-Sep-2021, while FIIs owned 9.22 per cent, DIIs 13.71 per cent.