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Dolat Capital: Minda Corporation Q1 Review - Ready To Take Off, Multiple Tailwinds Ahead 

Dolat Capital: Minda Corporation Q1 Review - Ready To Take Off, Multiple Tailwinds Ahead

Employees at Spark Minda assembly line. (Source: Company website)
Employees at Spark Minda assembly line. (Source: Company website)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Dolat Capital Report

Minda Corporation Ltd.’s consolidated revenue fell by 70% YoY to Rs .1.78 billion in Q1 led by production cuts taken by various original equipment manufacturers due to nationwide lockdown.

Negative operating leverage, and foreign exchange losses turned the Ebitda into loss of Rs 203 million.

The management states that recovery in volume of two-wheeler and tractor, die casting and aftermarket business will aid revenue and margin from Q2 onwards. Two and three-wheeler accounts for 53% and aftermarket 14% of overall revenue.

Minda Corporation is one of the leading suppliers of lock sets, wiring harness and instrument clusters in the Indian automotive market.

We believe that the stock deserves to trade at higher multiples (compared to current levels 14/10 times for FY22/23E) as we forecast Ebitda to grow at 50% compound annual growth rate over FY21- 23E and there will be a significant improvement in cash flow generation and return ratio.

Click on the attachment to read the full report:

Dolat Capital Minda Corp Q1Y21 Result Update.pdf

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