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Buy Minda Industries; target of Rs 328: Anand Rathi

Anand Rathi is bullish on Minda Industries has recommended buy rating on the stock with a target price of Rs 328 in its research report dated July 01, 2020.

July 03, 2020 / 02:32 PM IST
 
 
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Anand Rathi 's research report on Minda Industries


While externalities have impacted results, and is expected in FY21, the product introductions would arrest the revenue decline to some extent, in our view. 1) Two-wheeler alloy wheels; estimated revenue `1bn. 2) Orders for seating business from new customers to the extent of `5bn. 3) `2bn order for head-lamps and tail-lamps from Maruti (the last order was from Eeco). 4) Sensors to the extent of `1bn order. Accordingly, we expect a 9.4% CAGR over FY20-22 in revenue.



Outlook


We expect FY22revenueof `71.56bn, at 45% growth driven by underlying auto-sector growth, growth in product launches - higher alloy wheel business, seatings, and wireless chargers. Accordingly, we expect earnings of `4.08bn, leading to an EPS of `15.6. We maintain our Buy rating, at a target of `328 (21x FY22e EPS).





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first published: Jul 3, 2020 02:32 pm

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