Please refer to important disclosures at the end of this report
1
Minda Industries Limited (MIL) is a supplier of automotive solutions to original
equipment manufacturers. The Company offers a range of products across
various verticals of auto components, such as switching systems, acoustic systems
and alloy wheels, among others. MIL is in process of consolidating its businesses
under the listed entity. The restructuring exercise will enable the company to
widen its product portfolio & client base (both domestic & overseas) along with
strengthening its books to qualify for big overseas orders from large global
OEMs. In addition, the company aspires to be a leading player both by volume
and sales without impacting the margins. MIL expects to raise `600cr fo
r
expansion in the next two years. Talking about the business outlook the compan
y
enjoys a high share in switches and horns. Around 18 per cent of the Company's
turnover is from international business and going forward they intend to increase
the international turnover to 25 per cent. MIL, the flagship company of UNO
MINDA Group has raised `300cr through Qualified Institutional Placement (QIP).
This capital increase will be instrumental in achieving our near-term investment
requirements, which will set a strong foundation for future growth. MIL’s top line
is expected to grow led by product innovation, growing customer base and
upcoming ventures. With the consolidation of the group business coupled with
inorganic growth, better capacity utilization and benefit of operating leverage.
The Debt / Equity ratio stand at 0.7x as on 31
st
Dec 2016. The company has
been reporting consistent profit growth of 25% CAGR over 5 years. Hence Buy.
BUY
CMP `437
Stock Info
Sector
Beta
Bloomberg Code
Shareholding Pattern (%)
Promoters 67.9
MF / Banks / Indian Fls 11.2
FII / NRIs / OCBs 8.3
Indian Public / Others 12.3
Abs. (%) 3m 1yr 3yr
Sensex 7.4 13.6 28.8
Minda Industries 31.9 117.5 981.1
.
52 Week High / Low 452/194
Avg. Daily Volume 25,626
Auto Ancillary
Market Cap (
`
cr) 3,774
2
BSE Sensex 29,319
Nifty 9,105
Face Value (
`
)
Reuters Code MNDA.BO
MNDA@IN
1.0
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
Minda Industries
Others |
A
uto Ancillar
y
April 19, 2017
Minda Industries |
A
uto Ancillar
y
A
pril 19, 2017
2
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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Disclosure of Interest Statement Minda Industries
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment
p
eriod
)
: Reduce
-5% to -15%
)
Sell
(
< -15
)