About the stock: Minda Corporation (MCL) primarily serves auto OEMs across 2 main verticals – Mechatronics & Aftermarket (i.e., MCH – safety & security, die-casting, starter motors etc.) and Information & Connected Systems (i.e., ICS – mainly wiring harnesses and instrument clusters).
MCL has been one of our early finds with stock price nearly 3x since our initiation in Dec 2020, vastly outperforming the Nifty Auto Index
Introducing FY24E estimates, we now value MCL at a revised target price of ₹315 i.e., 25x P/E on FY24E EPS of (previous target ₹220)
Besides MCL, in our ancillary coverage we like Apollo Tyres.
|Particulars||FY19||FY20||FY21||5 year CAGR (FY16-21)||FY22E||FY23E||FY24E||3 Year CAGR (FY21-FY24E)|
|EBITDA Margins (%)||9.5||11.0||9.2||-||9.6||11.7||12.2||-|
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