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Company Report
Rs.89.40
Target Price
Rs.120.00
BSE Code
538962
1871.14
52 Week High/Low
99.80/68.50
Industry
Auto Ancillaries
Face Value
Rs.2.00
Shares O/S
20.93 Cr.
EPS(TTM)
4.36
Book Value
23.78
P/E
20.50
P/B
3.76
BUY
The company has registered decent results for the quarter ending
September 2015. The consolidated revenues grew by 27.16% to
Rs.616.22 crores vs. Rs.484.59 cr. in the year ago quarter while it
grew ~17% q-o-q. The growth was due to the combined effect of
new products that started during the year and of increase in the
share of business of few of the existing customers. Operating
profit too grew sharply by 29% at Rs.58.56 crores as against
Rs.45.43 crores in the preceding quarter while it climbed 24% on a
q-o-q basis. The companys continued focus on value added
products coupled with the ongoing cost optimization initiatives
helped the profits. The adjusted net profit surged at Rs.23.04
crore as against Rs.21.73 crore; registering growth of mere 6% on
a y-o-y basis while it surged by 30% as compared to like quarter
last year mainly attributed to lower interest outgo. Interest
expense decreased on account of better cash management, lower
working capital requirements and repayment of term loan.
Shareholding Pattern
Valuation
Hem Research
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Business overview
Minda Corporation is a leading automotive component and
flagship company of Spark Minda, Ashok Minda Group,
which was founded in 1958 by Late Shri S. L. Minda. The
company is a diversified company with a product portfolio
encompassing from Mechanical & Electronic Security System,
Electronic Controllers for Electric Vehicles and for Auto
OEM's across the Globe. It also manufactures Die Casting
Parts for auto and consumer durable industry. The Company
is one of the largest suppliers of 2 wheeler, 3 wheeler and Off
Road vehicles Electronic & Mechanical Security System to
OEM's and exports about 20% of its products to USA, UK,
Europe & South East Asia and ASEAN countries.
Headquarter at Noida, Minda Corporation Limited is an
erstwhile Joint Venture with Huf Hlsbeck & Frst GmbH & Co. KG, Germany.
It is the only company in India to have its own patented Magnetic Shutters for 2 wheeler application. To enhance the
vehicle security it manufactures Lock Sets with conventional keys, 2 Track Keys, 4 Track Keys & Snake Biting Keys for
2 Wheeler Applications. The company designs & manufactures Immobilizers for 2 wheeled vehicle applications and
also has patent for the Immobilizer application for vehicles operating with drained or no battery condition.
Strong customer base including key OEMs: Ashok Leyland,
Bajaj, BMW, Daimler, Hero MotoCorp, Honda Motorcycle,
Mahindra & Mahindra, Maruti Suzuki, Renault Nissan, Tata
Motors, TVS Motors, Yamaha and VW Group. The Company
has 29 state of the art manufacturing facilities - India (24),
South-East Asia (2) and Europe (3) and a representative office
in Japan with a workforce of over 10,000.
The company has a separate Die Casting Division with
manufacturing facilities like GDC, LPDC, HPDC for
Aluminum & Zinc Hot Chamber Die Casting under one roof.
The casting facility is supported with state of the art
machining centers for supply of fully finished products. All other related facilities like Die design & manufacturing,
Core making, Heat Treatment (T6), Shot blasting, Powder coating, etc. are in- house. Product range includes
Compressor Housings for Turbo Chargers, Upper Brackets & Handle Holders used in premium segment bikes, Brake
Calipers, Master Cylinders, TMC, In- take manifold, etc.
Hem Research
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Hem Research
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Hem Research
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FY13
FY14
FY15
FY16E
FY17E
2173.58
1593.91
1970.64
2463.30
3098.83
-26.67%
23.64%
25.00%
25.80%
Growth
Expenditure
2064.88
1468.16
1785.09
2224.36
2782.75
EBITDA
108.70
125.75
185.55
238.94
316.08
15.69%
47.55%
28.77%
32.28%
Growth
EBITDA margin
5.00%
7.89%
9.42%
9.70%
10.20%
Other income
36.20
30.38
22.67
19.71
21.69
77.05
47.80
60.26
70.07
76.59
EBIT
67.85
108.33
147.96
188.58
261.18
EBIT margin
3.12%
6.80%
7.51%
7.66%
8.43%
Interest
42.43
27.51
39.46
35.53
34.18
PBT
25.42
80.82
108.50
153.05
227.01
Tax
17.47
17.20
27.15
39.79
61.29
PAT
7.95
63.62
81.35
113.26
165.71
Share of Associates
0.00
0.98
4.43
0.00
0.00
(1.03)
0.00
(1.37)
2.30
2.80
8.98
64.60
87.15
110.96
162.91
619.46
34.91
27.32
46.82
Minority Interest
Adjusted PAT
Growth
Net Profit margins
0.41
4.05
4.42
4.50
5.26
Exceptional item
2.98
(14.75)
(2.38)
0.00
0.00
Reported PAT
6.00
79.35
89.53
110.96
162.91
Equity Capital
20.40
20.26
41.46
41.86
41.86
1013.08
1015.08
1308.63
1,392.62
1,492.13
Equity Shares
2.04
2.03
20.73
20.93
20.93
Adjusted EPS*
0.43
3.12
4.20
5.30
7.78
Hem Research
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Balance Sheet
Rs. Crore
Particulars
FY13
FY14
FY15
FY16E
FY17E
20.40
20.26
41.46
14.46
14.46
Preference Capital
19.20
19.20
19.20
19.20
19.20
306.61
349.93
405.90
504.30
650.47
Shareholders funds
346.21
389.39
466.56
537.96
684.13
Borrowings
531.87
552.33
501.85
473.71
455.71
10.34
8.59
5.70
5.70
5.70
Minority Interest
5.12
0.00
24.15
25.60
25.76
Sources of funds
893.54
950.32
998.25
1042.97
1171.30
Gross block
902.30
987.05
1,032.26
1094.80
1178.26
Accumulated Depreciation
435.81
460.26
461.46
531.53
608.12
Net block
466.49
526.78
570.80
563.27
570.14
Capital WIP
67.68
15.02
15.32
19.36
23.82
Investments
0.00
24.52
28.91
30.65
37.70
Inventories
252.74
186.65
230.77
270.47
320.61
Sundry debtors
305.49
291.48
317.62
368.02
438.16
57.50
54.02
44.11
44.34
53.43
7.30
10.50
19.65
4.43
21.37
115.73
203.20
194.41
199.53
235.11
738.76
745.86
806.56
886.79
1068.68
379.40
361.86
423.33
457.11
529.05
359.36
383.99
383.22
429.68
539.63
Uses of funds
893.54
950.32
998.25
1,042.97
1,171.30
FY13
FY14
FY15
FY16E
FY17E
Return on Equity
2.75
17.45
19.48
21.39
24.50
7.73
11.50
15.28
18.64
22.91
Debt/Equity
1.63
1.49
1.12
0.91
0.69
Asset turnover
1.71
1.21
1.39
1.64
1.82
Current Ratio
1.95
2.06
1.91
1.94
2.02
Interest coverage
1.60
3.94
3.75
5.31
7.64
Ratios
Particulars
Hem Research
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Q2FY16
Q2FY15
Q1FY16
YoY%
QoQ%
Revenues
616.22
484.59
528.07
27.16
16.69
Expenditures
557.66
439.16
480.85
26.98
15.97
Operating Profit
58.56
45.43
47.22
28.90
24.02
23.04
21.73
17.7
6.03
30.17
Exceptional item
6.02
---
2.54
----
----
Reported PAT
29.06
21.73
20.24
33.73
43.58
OPM%
9.50
9.37
8.94
13bps
56bps
NPM %
3.74
4.48
3.35
(110bps)
39bps
Adjusted EPS*
1.10
1.04
0.85
5.77
29.41
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23 2 9
2015
16
23
30
13 20 27 4 11 21
April
May
1
15
June
29 6
July
13
20
27
3
10
August
17
24
31 7
14 21 28 5
12
September
October
19 26
2
9 16
November
23 30 7
14
December
21 28
4
11
2016
Hem Research
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research@hemonline.com
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Disclosure of Interest Statement
Company Name
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The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject
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