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Minda Industries Q2 Review - Focus On Building Up EV Portfolio; Sharp Run-Up Limits Upside: Systematix

Minda Industries Q2 Review - Focus On Building Up EV Portfolio; Sharp Run-Up Limits Upside: Systematix

An employee performs a quality check on an engine part. (Photographer: Muhammad Fadli/Bloomberg)  
An employee performs a quality check on an engine part. (Photographer: Muhammad Fadli/Bloomberg)  

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

Systematix Research Report

Minda Industries Ltd.'s Q2 FY22 operating performance was 7% ahead of consensus and our estimates on a strong topline show.

Lower production by original equipment manufacturers due to the on-going semiconductor chip shortage impacted Ebitda margins.

The constraints should ease in H2 FY22 and lead to a recovery in profitability.

Minda Industries has added three new components in production and two under development for the electric-two-wheeler/electric-three-wheeler segments, which increases its target content per vehicle to Rs 19,000 (versus Rs 7,300 in internal combustion engines).

While we remain enthused by the new product development (especially electronics) in the electric vehicle space, the sharp run-up in the stock price provides limited upside.

Click on the attachment to read the full report:

Systematix Minda Industries - Q2FY22 Result Update.pdf

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