Buy Minda Corporation, target price Rs 120: ICICI Direct

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Buy Minda Corporation, target price Rs 120:  ICICI Direct


ICICI Direct has buy call on with a target price of Rs 120.0. The current market price of Minda Corporation Ltd. is Rs 100.05.

Minda Corporation Ltd., incorporated in the year 1985, is a Small Cap company (having a market cap of Rs 2390.79 Crore) operating in Auto Ancillaries sector.

Financials
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 749.47 Crore, up 12.95 % from last quarter Total Income of Rs 663.55 Crore and up 9.18 % from last year same quarter Total Income of Rs 686.48 Crore. Company reported net profit after tax of Rs 43.82 Crore in latest quarter.

Investment Rationale
FY21E-23E PAT CAGR at MCL is seen at ~62% (albeit on a low base). Broadbased positivity across served segments domestically, new order wins along with structural margin tailwinds help us maintain BUY on MCL. The brokerage values it at Rs 120, 15x P/E FY23E EPS (previous target price Rs 105) and remain enthused by its long term vision to clock ~12% margins and ~20%+ RoIC.


Promoter/FII Holdings
Promoters held 70.9 per cent stake in the company as of June 30, 2020, while FIIs held 10.26 per cent, DIIs 7.47 per cent and public and others 11.4 per cent.



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