Minda Corp Q3 Results Review - Favorable Order Booking Continues: Nirmal Bang

Nirmal Bang Report

Minda Corporation Ltd.'s Q3 FY24 results were below our estimates. Revenue came in -5.1% lower than estimate, Ebitda margin was 10 basis points above estimate and profit after tax came in -12.8% lower than estimate due to an increase in finance costs associated with capacity expansion.

The two wheeler demand is anticipated to increase, particularly in the entry-level segment. There is robust order booking in the passenger vehicle sector, an extended cycle in the commercial vehicle segment, and a resurgence in export activities.

Minda Corp plans to move forward by concentrating on the premiumisation of its core products, expanding market share with existing clients.

It has established two technical centers in Pune and Bangalore, with a primary focus on enhancing its product line.

We expect revenue/Ebitda/ profit after tax to grow more than 10% compound annual growth rate in FY23-FY26E. We maintain our 'Buy' rating on Minda Corp with a target price of Rs 467.

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