Company Update - Minda Industries - ICICI Direct

The company announced fresh capex in alloy wheel space, equity investment in FRIWO AG, formation of JV with FRIWO AG for EV components.

• MIL guided for: (i) expansion in alloy wheel capacity across the 2-W & 4-W segments at a capex outlay of ~Rs. 264 crore; (ii) formation of JV (50.1% stake) with FRIWO AG for electric vehicle components for 2-W, 3-W with initial investment commitment of ~Rs. 71 crore (over the next three years);
• (iii) Equity investment in FRIWO AG through fresh issuance of shares for a total value of €15 million (~Rs. 130 crore) subject to regulatory approvals

Key triggers for future price performance

• We build 22.5% net sales CAGR (FY21-24E) riding on OEM ramp up, focus on premiumisation (content per vehicle), new product launches
• Minimal EV risk to portfolio; actively working on EV-specific products
• Increasing share of new age products (sensors, alloy wheels)
• Mix, operating leverage to push margin, RoCE to 12.8%, 17% (FY24E), respectively

For details, click on the link below: Link to the report

Shares of Minda Industries Limited was last trading in BSE at Rs. 1031.80 as compared to the previous close of Rs. 1038.15. The total number of shares traded during the day was 53034 in over 4120 trades.

The stock hit an intraday high of Rs. 1073.50 and intraday low of 1010.55. The net turnover during the day was Rs. 55477292.00.

Source : Equity Bulls

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MindaIndustries INE405E01023 CompanyUpdate ICICIDirect