Accumulate Minda Corporation; target of Rs 554: KR Choksey

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KR Choksey's research report on Minda Corporation

In Q1FY25, Minda Corp. reported revenue of INR 11,924 Mn (+11.1% YoY/ -1.0% QoQ), which missed our estimates by 3.6%. EBITDA for the quarter was INR 1,318 Mn (+14.9% YoY / -4.9% QoQ), falling short of our estimates mainly due to higher-than-expected employee costs. EBITDA margin stood at 11.1%, expanding by 38 bps YoY but contracting by 35 bps QoQ. In Q1FY25, Adj. PAT was INR 642 Mn (+42.0% YoY/ -9.3% QoQ), which missed our estimates on the back of higher-than-expected operating expenses.

Outlook

Given Q1FY25 performance and the current outlook, we have largely maintained our FY25E/FY26E EPS estimates. We revise our PE multiple of 34.0x (previously 28.0x) for FY26E EPS of INR 16.3 to arrive at a target price of INR 554/share (previously: INR 458). Given the 8.4% upside potential, we maintain an “ACCUMULATE” rating on Minda Corp. Ltd.

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Minda Corporation - 160824 - kr