UNO Minda Ltd. share price target

Minda Industries Ltd (MIL) is a diversified auto ancillary supplier, manufacturing products such as switches, horns & lights. MIL holds a leadership position in switch business with a market share of 67%. MIL's diversified portfolio in the auto component has led the revenue to grow by 8%YoY. This was largely on account of demand for superior product related to BS-VI vehicles. Enhanced safety features and premiumisation of vehicle will further lead to value migration and higher kit value per vehicle for...

MIL said: (1) It reached 100% 4-W alloy wheel utilisation in SeptemberOctober, (2) Recently commissioned two lines of 2-W alloy wheel plant with remaining two to be commissioned by March 2021; expect 60-70% utilisation in FY22 (peak revenue potential ~| 470 crore), (3) Rights issue money utilised to write down debt, WC needs, investments, (4) Harita Seating (HSSL) merger to help both companies acquire newer clients; MIL will introduce some HSSL products in its aftermarket channel. It wants to double HSSL topline in four to five years, (5) high value businesses acquired post Delvis acquisition have peak revenue potential of ~| 200 crore per...

Minda Inds (Minda) topline came below our expectation topline, however losses at both EBITDA and PAT levels were lower than our expectations.

Background Established in 1958, Minda Industries (MIL) is a flagship Company of UNO MINDA GROUP and one of the leading suppliers of proprietary automotive solution to OEMs. Headquarter at Manesar, Gurgaon, the company has 62 plants globally and R&D; centers spread across the globe in 8 locations. The company offers a wide range product across different verticals of auto components like switching systems, lighting systems, acoustic systems and alloy wheels among others. It has more than 230 design registration and more than 30,000 touch points. Company has ~50% market share in switch segment thus leading automotive components...

Minda Industries Ltd (MIL) Q1FY21 result was above our and below consensus estimates. Revenue stood at Rs4.17bn vs our estimates of Rs3.34bn due to lower revenue fall in lighting/acoustics business. EBITDA loss stood at Rs715mn vs our estimates loss of Rs1.47bn on account of lower RM and operating cost. We expect 4W/2W industry to decline in double digit in FY21 and demand for lower end cars to impact MIL business. However with focus adding more value to the existing components and systems, next-gen products like controllers/sensors, 2W alloy wheel business and Harita acquisition would help MIL to arrest the current slowdown. We...

MIL said (1) It operated at ~70% pre Covid levels in July and is currently operating at ~80% in August, with rural-led demand recovery (2-W, tractors) seen continuing; (2) August production levels Europe 85%, Mexico 75%, Asean 60%; (3) 2-W alloy wheel plant to be commissioned by September 2020 (full ramp up by mid next year), (4) large part of rights issue proceeds to be used to retire debt (marginally down QoQ) & is expected to be EPS accretive (5) Expect ~| 100 crore incremental sensors revenues in FY22E, (6) Delvis normal annual sales run rate is ~ | 250 crore; (7) Steep drop in...

Minda Industries Ltd (MIL) is a leading tier 1 supplier for Indian OEM's with a diversified product portfolio which includes switches, lighting systems, sensors, air bags, infotainment, batteries, alloy wheels, blow molded parts etc. It has 62 manufacturing facilities in 7 countries

Challenging quarter as COVID outbreak further worsens scenario, which was continued to be impacted by slowdown in automobile demand.

COVID 19 IMPACT: BEST OF THE LOT WITH SUPERIOR OFFERING

Minda Industries Ltd (MIL) is a diversified auto ancillary supplier, manufacturing products such as switches, horns & lights. MIL holds a leadership position in switch business with a market share of 67%. MIL's diversified portfolio in auto components manufacturing qualify it to be a direct beneficiary post COVID 19. Implementation of BS-VI norms, enhanced safety features and premiumisation of vehicle will further lead to value migration and higher kit value per vehicle for MIL in FY21....