Minda Industries (MNDA.IN) - Robust performance - CSEC Research

- In 2QFY18, Minda Industries' consolidated revenue grew by 23% YoY to INR 10,984mn, primarily driven by improvement in performance of Minda Kosei, MJ Castings and Rinder India. Standalone revenue came in at ~INR 4.8bn, up 9% YoY.

- Consolidated EBITDA grew by 41% YoY to INR 136.6mn. Consolidated EBITDA margin stood at 12.4% (+162bps YoY) on account of higher efficiency & operating leverage and improvement in margins in the Switches & Lighting Division. Standalone EBITDA margin came in at 10.4% (flat YoY). Consolidated PAT stood at INR 733mn, (+73% YoY), aided by superior operating performance and higher other income.

- The newer business lines like alloy wheels, die casting and blow molding divisions contributed 25% to the consolidated revenues and reported an EBITDA margin of 21.5% in 2QFY18.

Valuation: At CMP the stock trades at 28.8X FY19EPS, we rate the stock an OUTPERFORMER with revised target price of INR 1,126, valuing the stock at PE of 31X FY19E.

Risks: MIL is exposed to risk in respect of price availability of certain raw materials such as plastic powder, aluminum etc.

Shares of MINDA INDUSTRIES LTD. was last trading in BSE at Rs.1053 as compared to the previous close of Rs. 1031.45. The total number of shares traded during the day was 17988 in over 1674 trades.

The stock hit an intraday high of Rs. 1063.8 and intraday low of 1039.85. The net turnover during the day was Rs. 18948304.

Source : Equity Bulls

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