Comments
Target: ₹270
CMP: ₹229.85
Minda Corp currently focuses on global trends, driven by Connectivity, Autonomous, Shared Mobility and Electrification, shaping the auto-ancillary space. In line with these trends, the company has identified its pillars of growth — focus on enhancing the core business; innovation and technology; EV growth opportunities; and strengthening passenger vehicle offerings.
In Q1 FY23, Minda Corp won lifetime orders worth ₹2,500 crore as per projections provided by the OEM, of which about 20 per cent are in the EV segment consisting of both legacy products and new-age products. The management said it is witnessing traction in EV products sales from two-wheeler OEMs, and expects a pick-up in EV product sales volumes and margins to stabilise from next year. It is already developing new products in the EV space.
The management said its capital allocation policy towards acquisitions strictly focuses on the ability to generate returns. The company has a cash balance of ₹335 crore and net debt of ₹55 crore (vs ₹-16 crore in FY21) and net debt to EBITDA of only 0.5x as on March 31.
We continue to like the company’s growth story driven by increasing kit value per vehicle, focus on EV, removal of drag from loss-making operations, and probable inorganic acquisition given its cash-rich position.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.