Company Update - Minda Corporation - ICICI Direct

- Steadily stepping up the game in the EV space with development of new products in-house. Potential kit value in electric 2-W seen at Rs. 16,000-20,000/unit from prevailing ICE 2-W kit value at Rs. 4,000-4,500/unit

- Increase in kit value envisaged through content increase in existing products as well as new product offerings. On-boarded marquee EV OEMs like Ola Electric (sole supplier of smart key), Hero Electric, Ampere among others

- History of outgrowing base OEM industry in the past with further commitment to grow 10-15% ahead of industry volumes, going forward

Key triggers for future price performance

- Robust order wins (~Rs. 4,232 crore lifetime orders for 9MFY22; replacement & new business combined; EV order win at Rs. 843 crore) imparts healthy revenue visibility. We build 23.8% FY21-24E consolidated sales CAGR

- Strong EV order book with two new EV OEMs (Hero Electric & BMW) added to list marking all prominent names in the EV space as its clients

- Acquisition of JV's stake in Stoneridge (for Rs. 161 crore) to be margin and return ratios accretive. Consequent consolidated RoE, RoCE seen at 17-19% by FY24E. EBITDA margins are seen improving to 12.2% by FY24E

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

Shares of Minda Corporation Limited was last trading in BSE at Rs. 271.20 as compared to the previous close of Rs. 258.70. The total number of shares traded during the day was 197037 in over 3420 trades.

The stock hit an intraday high of Rs. 275.40 and intraday low of 251.95. The net turnover during the day was Rs. 51855109.00.

Source : Equity Bulls

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