Minda Corporation Ltd. share price target

We maintain our BUY rating on the stock with a revised TP of Rs 245 (Rs 230 earlier), valuing the company at 18x FY24E EPS, implying an upside of 18% from CMP.

About the stock: Minda Corporation (MCL) primarily serves auto OEMs across two main verticals Mechatronics & Aftermarket (i.e. MCH safety & security, die-casting, starter motors, etc) and Information & Connected Systems (i.e. ICS mainly wiring...

We revise our rating from HOLD to BUY and value the stock at 17x FY24E EPS to arrive at a target price of Rs 230/share.

Given the recent run-up in Minda Corps stock price, we are revising our rating from BUY to HOLD and value the company at 16x FY23E EPS to arrive at a target price of Rs 170.

Robust order wins (~| 5,000 crore lifetime orders in past 18 months; replacement + new business) imparts healthy revenue visibility in medium to long term. We build 25.4% (FY21-23E) consolidated sales CAGR Has orders from incumbent and new age EV OEMs including Ola Electric FY23E margins, RoCE seen at 12.2%, 16.8%. Acquisition of remaining 49% stake in JV with Stoneridge (for | 161 crore i.e. <6x FY21 EV/EBITDA) to be...

We recommend a BUY on the stock.

We have maintained our multiple at 15x FY23E to arrive at a target price of Rs 148 and retain BUY, resulting in an upside of 13%.

We estimate Revenue and APAT to grow at a CAGR of 15% and 28% respectively with FY20-23E. We have given a higher multiple for the company at 15x FY23E to arrive at a target price of Rs133 and retain BUY, resulting in an upside of 19%.

Minda Corp's (MDA) Q4FY21 topline increased 7% QoQ to Rs 7.9bn.