KR Choksey's research report on Minda Industries
Revenue reported at INR 24,151Mn (+7.9% yoy / +10.7% qoq) in the midst of semiconductor shortage and inflationary pressures due to geopolitical tensions. In terms of business segments, revenue contribution from 2Ws and 4Ws stood at 45% / 55%, respectively. Export revenue stood at 16% of overall revenue during the quarter. EBITDA reported at INR 2,755Mn (-8.65% yoy / +17.07% qoq) and EBITDA margin reported at 11.4% (-207bps yoy / +62bps qoq). Employee expenses were higher on account of stock option expenses of INR 150Mn. PAT reported at INR 1,444Mn (+2.89% yoy / +42.5% qoq) and PAT margin reported at 5.9% (-29bps yoy / +133bps qoq). EPS reported at INR 5.11 and the board has recommended final dividend of INR 1.0/share. Total dividend for the year is at INR 1.5/share. The board has recommended bonus issue in 1:1 to ratio.
The stock has corrected by ~4% in the last one month that provides a good opportunity for the investors with good entry levels. We maintain our target price of INR 1,180/share (36.5 PE to FY24E EPS) and change our recommendation to BUY from ACCUMULATE with an upside of 33%.
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