Minda Corp posted weak margin performance in 2QFY21. Revenue grew 17% YoY while EBITDA remain flat dragged by contraction in gross margin. EBITDA margin stood at 10% (-187bps YoY) led by weak margin in both Mechatronics and Wiring harness segment. Net profit de-grew...

we expect the profitability of the company to improve over FY21 to FY23 (around FY19 levels) on back of operating leverage. Currently trading at sub 10x FY23, we value the company at 13x FY23E to arrive at a target price of Rs 88 (Rs 90 earlier) and retain BUY.

MCL has a diversified product base and strong clientele. The management has taken bold steps to improve profitability by getting rid of the loss making German business, undertaking cost rationalization measures and improving business mix with focus on high yield products. We expect MCL's top line to grow at 1.5x the automobile industry led by (i) organic and inorganic expansion, (ii) strong relationships with OEMs, (iii) opportunities in sensors, ABS and wiring harness on the back of BS6 implementation and (iv) focus on exports. At CMP, MCL is trading at a PE of 13.0x FY22E EPS. We maintain Buy' on the stock with a target of Rs. 103 (at 18x FY22E).

Minda Corporation is one of the leading suppliers of locksets, wiring harness and instrument clusters in the Indian automotive market. We believe that the stock deserves to trade at higher multiples (compared to current levels 14/10x for FY22/23E) as we forecast EBITDA to grow at 50% CAGR over FY21- 23E and there will a significant improvement in cash flow generation and return ratio. The key catalysts that would drive stock re-rating are 1) wind up of its loss making KTSN business is structurally positive(significant saving in...

Minda Corp. Ltd.'s Q1FY21 performance was not only marked by the disruption due to lockdown but also without its European subsidiary Minda KTSN post announcement of the insolvency in June 2020. Hence, the quarterly results reported for Q1FY21 were without the numbers from its erstwhile

Minda Corporation Ltd, consolidated revenue from operations in Q1FY21 declined by 69.53% YoY and (down 66.82% QoQ) to INR 1779.60 Mn, impacted by lockdown. Gross profit margin for Q1FY21 came in at 37.77%. MCL reported EBITDA loss of INR 203.20 Mn compare to positive EBITDA of INR 666.8 Mn. EBTIDA margin for Q1FY21 was negative 11.42% compare to positive EBTIDA margin of 11.42%, significant decline was due to negative operating leverage, product mix and higher fixed cost. MCL reported net loss of INR 354 Mn in Q1FY21 as compare to net profit of 212 Mn in corresponding quarter last year....

Mindacorp reported revenues ahead of our estimates atRs698cr down 10% YoY. Everything else about Q4 results was disappointing. EBIDTA margin came in at a paltry 5.5% (down 510 bps YoY and 580 bps QoQ). PAT came in at Rs-301.8 cr on a one time charge of Rs 293 cr due to closing of Minda KTSN business

COVID 19 IMPACT: BSVI BENEFITS OFFSET BY DEMAND WOES

Minda Corporation is one of the largest suppliers of Electronic & Mechanical Security System, Wiring Harness solution and interiors and plastics components to 2/3W, PV and CV OEMs in India. It is poised to benefit from BSVI transition significantly

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Valuation and Recommendation: MCL has a diversified product base and strong clientele. The management has taken steps to improve profitability by undertaking cost rationalization measures and improving business mix with focus on high yield products. We expect MCL's top line to grow at over 1.5x the industry led by (i) organic and inorganic expansion, (ii) strong relationships with OEMs, (iii) opportunities in sensors, ABS and wiring harness on the back of BS6 implementation and (iv) focus on exports. At CMP, MCL is trading at a PE of 12.3x FY22E EPS. We maintain Accumulate' on the stock with a target of Rs. 135 (at 15x FY22E).

Minda Ind.s (MIL) consolidated revenues stood at Rs 1,327 cr (?10% YoY & ?2% QoQ) in Q3FY20 largely in line with industry slowdown. The company reported EBIDTA of Rs 163 cr (?21% YoY & ?1% QoQ) with EBIDTA margin of 12.3% (+42 bps on YoY basis) owing to revenue decline

Minda Corporation Ltd. (MCL) posted revenues of Rs 671 cr (?13% YoY, ?9% QoQ) in Q3FY20 mainly due to fall in revenue largely reflecting the industry slowdown. EBIDTA margins were a beat and came in at 11.3% (v/s 7.1% in Q3FY19)

Minda Corporation Ltd. (MCL) posted revenues of Rs 735 cr (?5% YoY, ?4% QoQ) in Q2FY20 mainly due to fall in revenue (?22% YoY) in Information and Connected Systems (ICS) segment which caters to commercial vehicle industry which is down by 38.6% in Q2FY20.

Although reported EBITDA Margins were stable YoY at 9.5%, it was mainly due to the impact of IND-AS 116 which resulted in lower other expenses and higher depreciation and interest costs. Management has highlighted that EBITDA margins without this impact would have been 100 bps lower at 8.5% vs 9.4% in Q1FY19 and 10.6% in Q4FY19. Minda-KTSN EBITDA margins have declined from 6.5% to 0% YoY....

Minda Corporation Ltd. (MCL) posted revenues of Rs 702 Cr. (?9% YoY, ?8% QoQ) in Q1FY20 mainly due to dismal performance of Plastics & Interior business (?38% YoY). This was majorly due to a substantial fall in tool sales of Minda KTSN, on subdued European demand.

Minda Corporation Ltd. (MCL) posted revenues of Rs 771 Cr. (up 7% Y-o-Y, flat Q-o-Q) in 4QFY19 due to growth in volumes across major businesses particularly Mechatronics and Information & Connected systems, profit after tax was flat at Rs 39.1 cr.

Revenue from operations for the company grew by 7% YoY to Rs. 771 Cr vs Rs. 721 Cr YoY and Rs. 769 Cr QoQ. EBITDA stood at Rs. 82 Cr (same as Q4FY18) however EBITDA margins expanded by 350 bps QoQ to 10.6% for the quarter, led by a 460 bps improvement in gross margins (QoQ). EBITDA margins were at 11.4% during Q4FY18. Adjusted net profit was flattish on...

Incorporated in 1985, Minda Corporation Ltd. (MCL) is the flagship company of Spark Minda, Ashok Minda Group, the erstwhile Minda Group. One of the leading automotive component manufacturing companies, it has pan-India and international presence. The company operates through three business verticals Safety, Security & Restraint, Driver Information & Telematics and Interior Plastics for auto OEMs. Their products cater to 2/3 wheelers, passenger vehicles, commercial vehicles and after market. It has 34 manufacturing facilities in India (28 plants & two offices) & South-East Asia (2 plants & one representative office in Japan), Europe...

Healthy topline growth marred by steep decline in gross margins; expect margin pressure to persist Revenue from operations for the company grew by 21% YoY to Rs. 769 Cr vs Rs. 636 Cr YoY and Rs. 773 Cr QoQ. EBITDA stood at Rs. 54.8 Cr as against Rs. 71.7 Cr same time last year (degrowth of 24%) and Rs. 82.3 Cr sequentially. MCL witnessed 410 bps EBITDA margin contraction YoY at 7.1% for the quarter, led by a 520 bps decline in gross margins. Adjusted net profit came at Rs. 34.0 Cr vs Rs. 37.9 Cr same time last year, degrowth of 10%....