Minda Corporation Ltd. share price target

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.

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.

Minda Corp reported decent set of numbers, which were only marginally lower than our estimates. Its Net Sales grew at a healthy pace of 18.1% YoY led by strong growth witnessed in the domestic business which grew by 26% YoY. Despite margin improvement in its two segments namely, SSR and DIS, the overall operating margin contracted by 82bps during the quarter mainly on account of lower revenue in the Interior system (IS) business.

Revenue Visibility Looks Intact: Consolidated revenue for Q2FY19 came in at Rs. 7732 Mn vs. our estimation of Rs. 8187 Mn (5.5% deviation).

Minda Corp reported strong set of numbers, which was marginally ahead of our estimates. Its consolidated net revenue and PAT grew by 33.8% and 63.3% yoy. The growth was led by robust growth witnessed across all three verticals and improved operational performance.

Premiumisation Driven by Customer Demand:Current order book line-up during Q1FY19 was Rs. 11000 Mn (1.4x of Q1FY19 revenue) across three verticals; Safety & Security, Driver Telematics and InteriorSystems.