Q3FY21 Result Update - Minda Industries - ICICI Direct

Minda Industries (MIL) reported strong Q3FY21 results. Consolidated revenues jumped 35.8% YoY to Rs. 1,802 crore vs. ~17% underlying OEM volume growth. Margin performance was sustained QoQ at 14.7% with slight betterment in gross margins & employee cost savings cancelling out increase in other expenses. Consolidated PAT rose ~142% YoY to Rs. 108 crore (profit from subsidiaries & associates at Rs. 9 crore vs. Rs. 1 crore in Q3FY20). MIL declared interim dividend of Rs. 0.35/share for FY21.

Valuation & Outlook

We build sales, EBITDA CAGR of 19%, 32% over FY21E-23E (aided by low base, Harita merger). We remain positive on MIL as a play on vehicular premiumisation & see it continuing to outperform industry via kit value increase & new product additions (EV offerings the latest example). We maintain BUY & value it at Rs. 625 (35x P/E on FY23E EPS; previous TP Rs. 440).

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_MindaInds_Q3FY21.pdf

Shares of MINDA INDUSTRIES LTD. was last trading in BSE at Rs.552.05 as compared to the previous close of Rs. 505.4. The total number of shares traded during the day was 151163 in over 5927 trades.

The stock hit an intraday high of Rs. 579.4 and intraday low of 515.7. The net turnover during the day was Rs. 82870161.

Source : Equity Bulls

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