Minda Corporation Ltd. share price target

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.

Minda Corporation Limited (Minda) reported better than expected results in Q4FY18. Net revenue and PAT increased by 39.9% and 137% yoy respectively. The topline growth was supported by growth in volumes across segments and businesses; whereas net profit growth was mainly on account of improved margins.

Consistent Order Book Assures Revenue Growth: The order book build-up during FY18 was Rs. 42.2 Bn which is expected to beexecuted over the next six years translating to ~ 7 Bn per year. Based on this,we estimate revenue to grow at a CAGR of 20.6% during FY18-20E across thesegments with an EPS growth of 25.1%.

Minda Corporation Ltd. (MCL) in 3QFY18 posted revenues of Rs 636 Cr. (up 25.2% Y-o-Y, down 3% Q-o-Q) due to growth in volumes across major businesses particularly Safety, Security and Restraint systems. PAT was at Rs 37.9 Cr.

Consistent Order Book Build-up:Revenue for Q3FY18 came in at Rs. 6362 Mn, up by 25.2% YoY driven by strong growth in Safety and Security systems by ~ 66.0% and also due to the base effect on account of demonetization. Total orders booked during 9MFY18 are worthRs 28.5 Bn with a visibility for the next five years out of which a significant portion of Rs 16.3 Bn constitutes the Driver and Telematic System which includes wiring harness, instrument clusters & sensors.

Minda Corp reported better than expected Q3FY18 result. Total income and Net profit increased by 25.2% and 78% yoy respectively. The topline was supported by growth in volumes across all the business segments, whereas profit increased due to better product mix, reduction in operational cost and focus on profitable products.

Focus on increasing exports and reduce costs, geared to tap potential growth opportunities, Greenfield expansion at Mexico and Die Casting plant at Pune to aid revenue growth, Diversified revenue streams product and end-market wise