Minda Corporation Ltd. share price target

In Q3FY25, Minda Corp. reported revenue of INR 12,526 Mn (+7.4% YoY/ -2.9% QoQ), beating our estimates by 3.4%. EBITDA for the quarter was INR 1,436 Mn (+10.5% YoY / -2.1% QoQ), beating our estimates by 2.4%, due to strong operating performance. EBITDA margin stood at 11.5%, expanded by 32bps YoY (+10bps QoQ).

We recommend a HOLD rating (unchanged) on the company

We maintain our HOLD rating owing to a limited upside potential. However, we recommend a BUY on dips strategy for the stock.

In Q2FY25, Minda Corp. reported revenue of INR 12,900 Mn (+7.9% YoY/ 8.2% QoQ), beat our estimates by 5.5%.
EBITDA for the quarter was INR 1,466 Mn (+11.6% YoY / +11.2% QoQ), beat our estimates, due to strong operating performance.

We recommend a HOLD rating (earlier BUY) on the company

In Q1FY25, Minda Corp. reported revenue of INR 11,924 Mn (+11.1% YoY/ -1.0% QoQ), which missed our estimates by 3.6%.
EBITDA for the quarter was INR 1,318 Mn (+14.9% YoY / -4.9% QoQ), falling short of our estimates mainly due to higher-than-expected employee costs.

We maintain a BUY rating on the company

We recommend a BUY rating on the stock with a target price of Rs 502/share, implying an upside of 10% from the CMP

In Q4FY24, Minda Corp. reported revenue of INR 12,150 Mn (+13.1% YoY/ +4.2% QoQ), which was in-line with our estimates. The Company generated its highest ever quarterly revenue on a diverse product range, rising customer base and emphasis on premium products.

We maintain a positive view on the company as it will be a key beneficiary of product premiumization, EV growth, richer product mix on account of increased businesses from CV/PV OEMs and growth opportunities via organic and inorganic routes in the future.

For Q3FY24, MDA reported revenue of INR 11,658 Mn, a growth of 9.1% YoY. While YoY growth was better than the previous 2 quarters, revenue declined by 2.5% QoQ, from the highest-ever levels seen in Q2FY24 due to delay in SOP of some products.

Recommendation: We maintain a positive view on the company as it will be the beneficiary of product premiumization, EV growth, increased business from CV/PV OEMs and growth opportunities via organic and inorganic routes in the future.

For Q2FY24, MDA reported revenue of INR 11,958 Mn, a growth of 4.3% YoY/ 11.3% QoQ. This was the highest-ever quarterly revenue for MDA and an industry-beating growth. The growth was driven by robust demand in the domestic market, an increasing share of business with key customers, and product premiumization, despite continuing headwinds from exports on the back of geo-political issues.

We value the stock at 20x Sep '25 EPS (roll forward from Jun'25 EPS) as it will be a key beneficiary of product premiumization, EV growth, increased business from CV/PV OEMs and growth opportunities via organic and inorganic routes in the future; We arrive at a TP of Rs 375/share i

We maintain a positive view on the company as it will be a beneficiary of product premiumization, EV growth, increased business from CV/PV OEMs and growth opportunities via organic and inorganic routes in the future (stake increase in Pricol which has over 40% market share

Minda corp recorded revenue growth of 5.9% on a YoY basis, whereas industry volume grew by 2.3% YoY. The company is consistently outperforming the industry volume growth owing to cost leadership, increasing content per vehicle and premiumization.

Revving up dominance in the automobile industry

Recommendation: We maintain a positive view on the company as it will be a beneficiary of product premiumization, EV growth, increased business from CV/PV OEMs and growth opportunities via organic and inorganic route in the future (stake increase in Pricol will be the key monitorable).

During the quarter, MINDACORP’s revenue grew by 13.38% YoY, outperforming the industry’s revenue growth, primarily due to the addition of new customers and the launch of new products. Infrastructural spending and replacement demand have aided growth in the CV segment.