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Buy Minda Corporation; target of Rs 120: ICICI Direct

ICICI Direct is bullish on Minda Corporation has recommended buy rating on the stock with a target price of Rs 120 in its research report dated March 30, 2021.

March 30, 2021 / 02:19 PM IST
 
 
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ICICI Direct's research report on Minda Corporation


Minda Corporation (MCL) reported strong Q3FY21 results. Consolidated net sales rose 36% YoY to Rs 740 crore (like-to-like basis) – far outpacing the growth observed in the domestic OEM space. Blended operating margins rose 100 bps QoQ to 11.1% (110 bps increase in mechatronics division to 13.8%; 40 bps increase in information connected systems division to 7.1%) amid 80 bps QoQ gross margin expansion and 80 bps savings in other expenses on percentage of sales basis. Consequent consolidated PAT was up 19% YoY to Rs 49.5 crore.



Outlook


FY21E-23E PAT CAGR at MCL is seen at ~62% (albeit on a low base). Broad-based positivity across served segments domestically, new order wins along with structural margin tailwinds help us maintain BUY on MCL. We value it at Rs 120, 15x P/E FY23E EPS (previous target price Rs 105) and remain enthused by its long term vision to clock ~12% margins and ~20%+ RoIC.


For all recommendations report, click here


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first published: Mar 30, 2021 02:19 pm

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