Minda Industries - Q2FY21 Result Update - ICICI Direct

Minda Industries (MIL) reported healthy Q2FY21 results. Consolidated revenues rose 7.8% YoY to Rs. 1,465 crore vs. ~8% OEM production decline. Margins rose to multi-year high of 14.7% tracking operating leverage benefits and savings in both employee costs and other expenses (down 140 bps YoY & 170 bps YoY) with some savings in rent, travelling, etc, seen as being sustainable. Reported consolidated PAT rose ~62% YoY to Rs. 80 crore (profit from subsidiaries & associates at Rs. 10 crore, up 58.7% YoY).

Valuation & Outlook

We introduce FY23E estimates and build sales, PAT CAGR of 11%, 39% over FY20-23E with margins seen rising to 13.5% by FY23E. We continue to like MIL for its demonstrated history of industry-beating growth and constant kit value increases via product portfolio upgradation. We upgrade MIL to BUY, valuing it at Rs. 410 i.e. 32x P/E on FY22E & FY23E average EPS of Rs. 12.8.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_MindaInds_Q2FY21.pdf

Shares of MINDA INDUSTRIES LTD. was last trading in BSE at Rs.367.1 as compared to the previous close of Rs. 366.25. The total number of shares traded during the day was 731 in over 58 trades.

The stock hit an intraday high of Rs. 370 and intraday low of 365. The net turnover during the day was Rs. 267974.

Source : Equity Bulls

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