Buy Minda Corporation; target of Rs 351: KR Choksey

KR Choksey Research Report on Minda . Group

Minda Corporation Ltd’s consolidated revenue in Q1FY24 amounted to INR 10,745 million, up 5.9% year-on-year from INR 10,145 million and on a sequential basis it remained moderate from INR 10,746 million. EBITDA for the quarter was INR 1,147 million, up 3.5% on an annual basis from INR 1,108 million and on a quarterly basis, it decreased by 1.94% from INR 1,169 million. The margin for the quarter was 10.7%, indicating a decline of 26 basis points on an annualized basis and 21 basis points on a sequential basis. Net profit for the quarter was INR 452 million, down 13.9% on an annual basis from INR 525 million and down 62.9% on a sequential basis from INR 1,219 million. PAT on a QoQ basis is higher due to a one-time tax refund. NPM for Q1FY224 was 4.2%, down 97 basis points on an annualized basis and 714 basis points on a quarterly basis. EPS for T1FY24 came in at INR 1.90 compared to INR 5.1 per share quarter-on-quarter and INR 2.2 per share year-over-year.


We assign a PE multiple of 22.0x for 2025 EPS of INR 15.95 to revise our price target to INR 351/share (previous target: INR 348/share) and changed to a BUY rating for this action.