KR Choksey's research report on Minda Corporation
In Q2FY25, Minda Corp. reported revenue of INR 12,900 Mn (+7.9% YoY/ 8.2% QoQ), beat our estimates by 5.5%. EBITDA for the quarter was INR 1,466 Mn (+11.6% YoY / +11.2% QoQ), beat our estimates, due to strong operating performance. EBITDA margin stood at 11.4%, expanding by 38 bps YoY (+31 bps QoQ). In Q2FY25, Adj. PAT was INR 742 Mn (+26.5% YoY (+15.8% QoQ), which outperformed our estimates, on the back of strong operating performance and higher than expected other income. We maintain our FY25E and FY26E EPS estimates, supported by strong H1FY25 performance and a positive outlook.
Outlook
Our target price of INR 554/share remains unchanged, based on a P/E multiple of 34.0x applied to the FY26E EPS of INR 16.3. We upgrade our rating on Minda Corporation Ltd. to 'BUY' from 'ACCUMULATE reflecting our increased confidence on the back of company's robust earnings performance.
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