Minda Corporation Ltd. share price target

Recommendation: We maintain a positive view of the company as it will be a key beneficiary of product premiumization, EV growth, and increased business from CV/PV OEMs.

We continue to value the stock at 16x FY25 EPS. Our unchanged TP of 230 implies an upside of 13.5% from the CMP.

MCL's revenue increased by 45% YoY during the quarter, owing to outperformance in comparison to the industry. Revenue growth was fueled by strong domestic demand, an increase in wallet share with key customers, and new OEM launches. In Q3FY23, the company witnessed strong demand in PV segment with new launches, and robust festive demand, which led to higher production.

We maintain a moderately positive view on the company as it will be a key beneficiary to product premiumization, EV growth, increased business from CV/PV OEMs but have a cautious outlook on the 2W domestic market and overall export market in the next few quarters.

We maintain our BUY rating on the stock and value the company at 18x FY24E EPS to arrive at a TP of Rs 270/share (unchanged), implying an upside of 16% from the CMP.

Revenue reported at INR 10,102Mn (including Minda Instruments Ltd-MIL) with 6.6% qoq / 80.8% yoy growth driven by revenue visibility in both ‘Mechatronics & aftermarket’ and ‘Information & connected system’ business segments with increase in
business share from existing customers and rise in content per vehicle.