Minda Corporation Ltd., incorporated in the year 1985, is a Small Cap company (having a market cap of Rs 2316.68 Crore) operating in Auto Ancillaries sector.
Financials
For the quarter ended 31-12-2020, the company reported a Consolidated sales of Rs 739.80 Crore, up 12.76 % from last quarter Sales of Rs 656.10 Crore and up 10.18 % from last year same quarter Sales of Rs 671.44 Crore Company reported net profit after tax of Rs 43.82 Crore in latest quarter.
Investment Rationale
Post-KTSN impairment, the brokerage expects consolidated RoCE to improve from ~10% currently to ~18% by FY23E, driven by strong focus on profitable growth. Retain ‘BUY/SO’ with a TP of INR 114), valuing it at 13x June (earlier 11x) 2022E EPS. The stock is trading at FY22/23E PE of 11.7x/9.6x.
Promoter/FII Holdings
Promoters held 70.9 per cent stake in the company as of June 30, 2020, while FIIs held 10.26 per cent, DIIs 7.47 per cent and public and others 11.4 per cent.
