Buy Minda Corporation; target of Rs 664: KR Choksey

KR Choksey is bullish on Minda Corporation has recommended buy rating on the stock with a target price of Rs 664 in its research report dated February 10, 2025.

Broker Research

February 11, 2025 / 12:23 IST

Buy

26 Aug, 2025 12:21

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KR Choksey's research report on Minda Corporation

In Q3FY25, Minda Corp. reported revenue of INR 12,526 Mn (+7.4% YoY/ -2.9% QoQ), beating our estimates by 3.4%. EBITDA for the quarter was INR 1,436 Mn (+10.5% YoY / -2.1% QoQ), beating our estimates by 2.4%, due to strong operating performance. EBITDA margin stood at 11.5%, expanded by 32bps YoY (+10bps QoQ). Adj. PAT stood at INR 648 Mn (+23.5% YoY,-12.8% QoQ), which underperformed our estimates, mainly due to higher-than-expected depreciation and Income tax expenses. We raise our FY26E/FY27E EPS estimates by 4.5%/7.5%, driven by strong domestic growth, rising EV penetration, and Flash Electronics synergy benefits. A robust order backlog, positive outlook, increasing EV content value, expanding wiring harness indigenization, and product premiumization will drive long-term growth. We expect Revenue/ EBITDA/ Adj. PAT is to grow at a CAGR of 10.6%/ 16.0%/ 29.5%, respectively over FY24-FY27E.

Outlook

The stock is trading at 33.9x/ 28.0x of our FY26E/ FY27E Adj. EPS, respectively. We roll over our valuation to FY27E and assign a P/E multiple of 32.0x, to arrive at a revised target price of INR 664 per share (previously: INR 554). Consequently, we maintain a “BUY” rating on Minda Corporation Ltd.

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