Buy Minda Industries, target price Rs 1050: ICICI Direct

ICICI Direct has buy call on Minda Industries with a target price of Rs 1050. The current market price of Minda Industries is Rs 952.45. Time period given by analyst is one year when Minda Industries Ltd. price can reach defined target.

Minda Industries Ltd., incorporated in the year 1992, is a Mid Cap company (having a market cap of Rs 27123.96 Crore) operating in Auto Ancillaries sector.

Minda Industries Ltd. key Products/Revenue Segments include Electronic Components, Sale of services, Other Operating Revenue for the year ending 31-Mar-2021.


Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 2438.29 Crore, up 11.14 % from last quarter Total Income of Rs 2193.91 Crore and up 8.50 % from last year same quarter Total Income of Rs 2247.17 Crore. Company reported net profit after tax of Rs 126.70 Crore in latest quarter.

Investment Rationale
MIL is expected to report a stable performance in Q1FY23 largely tracking the volume readings in the 2-W & P V domain i.e. its key user industries and penchant to grow ahead of industry. Net sales on a consolidated basis is expected at Rs 2,371 crore, down 1.8% QoQ. EBITDA for the quarter is expected at Rs 261 crore with corresponding EBITDA margins at 11%, down 40 bps QoQ largely effected by gross margin decline. PAT for Q1FY23 is expected at Rs 120 crore, down 17% QoQ

Promoter/FII Holdings
Promoters held 67.47 per cent stake in the company as of 31-Mar-2022, while FIIs owned 9.77 per cent, DIIs 13.22 per cent.