KR Choksey is bullish on Minda Industries has recommended Accumulate rating on the stock with a target price of Rs 384 in its research report dated May 20, 2019.
HDFC Securities' research report on Minda Industries
Minda Industries Limited (MIL) Net Sales for Q4FY19 stood at INR 14865 Mn which was up by 8.43% YoY and 1.11% QoQ. The company’s top-line was estimated at INR 15390 Mn. Switches segment revenue declined by 5.14% to INR 5170 Mn YoY, this was mainly due to higher exposure in Maruti Suzuki. The share of Switches segment in topline declined to 34.8% from 39.8% YoY. EBIDTA of the company stood at INR 1,853 Mn reporting a growth of 9.36% YoY and 2.74% QoQ. EBIDTA margins stood at 12.47% showing a growth of 11bps YoY and 20bps QoQ Where as absolute EBITDA was in line with our estimates of INR 1,850 Mn. Adjusted PAT of the company stood at INR 735.5 Mn reporting a decline of 10% as compared to normalised (ex expectational item) PAT of INR 810Mn in Q4FY18 and increased by 6.04% QoQ. The board has approved final dividend of 0.65 per equity share of Rs. 2 each (Face Value) which is 32.50% to the equity shareholders for the year ended.
We recommend an “Accumulate” rating on the stock and assign a P/E multiple of 27x to the FY20 estimated EPS of INR 14.12 to come up at a target price of INR 384, an upside of 14% over the CMP.
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