Technical View
- Auto and auto ancillary space extended its outperformance as Nifty Auto index is poised for breakout above its multiyear highs since CY17. Within auto ancillary we remain positive on Minda Industries which is offering a favourable risk reward proposition at current juncture
- The stock has witnessed falling channel breakout after a strong base formation at the major support area around Rs. 860 being the rising 52 weeks EMA (currently placed at Rs. 860 levels) signalling resumption of up move and offers fresh entry opportunity
- The weekly RSI has recently generated a buy signal moving above its nine periods average thus validates positive bias
Fundamental View
- Minda Industries (MIL) is the flagship company of the UNO Minda group that has, over the years, evolved from a single-product, single segment player to one of the largest entities in the domestic auto ancillary space, providing solutions in areas of comfort & convenience (automotive switches, interior & exterior lighting, acoustics systems, seating), aesthetics (alloy wheels), safety (airbags, sensors & controllers) and others
- MIL posted healthy numbers for Q4FY22 with topline coming at ₹2,415 crores, up 10.7% QoQ. EBITDA came in at ₹276 crores with margins at 11.4% up ~60 bps QoQ, Gross margin expanded ~20 bps QoQ with substantial savings realised under other expenses, which were down ~60 bps on a QoQ basis
- We build 15.7% FY22-24E net sales CAGR riding on OEM ramp up, focus on premiumisation, expanded capacity, penchant to grow ahead of industry. With operating leverage gains in the offering PAT growth in the aforesaid period is placed at ~42% CAGR with consequent return ratios expected at >15%.
For details, click on the link below: Link to the report
Shares of Minda Industries Limited was last trading in BSE at Rs. 944.30 as compared to the previous close of Rs. 922.40. The total number of shares traded during the day was 8620 in over 948 trades.
The stock hit an intraday high of Rs. 948.20 and intraday low of 903.00. The net turnover during the day was Rs. 8071117.00. |
