Hold Minda Industries; target of Rs 1060: ICICI Direct

ICICI Direct's research report on Minda Industries

Minda Industries (MIL) is India’s largest maker of automotive switches, horns, seats & PV alloy wheels and third largest automotive lighting player. FY21 segment mix – 4-W 53%, 2-W 47%; switches, lighting, castings, horns and seats comprised 28%, 22%, 12%, 10% and 10% of sales, respectively. History of vast outperformance vs. user industries riding on growth in kit value, new client and product additions & inorganic acquisitions.

Outlook

We are positive on the growth prospects at MIL but retain our HOLD rating on the stock amid rich valuations (trades at >40x P/E on FY24E).

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