Nirmal Bang is bullish on Minda Industries has recommended hold rating on the stock with a target price of Rs 1175 in its research report dated February 20, 2018.
Nirmal Bang's research report on Minda Industries
Minda industries Ltd. (MIL) had another healthy quarterly performance. Revenue from operations for the company grew by 26% YoY to Rs. 1056 Cr vs Rs. 838 in Q3FY17 and Rs. 1,098 Cr in Q2FY18 (down 4%). EBITDA stood at Rs. 126 Cr as against Rs. 99 Cr same time last year (growth of 27%) and Rs. 137 Cr sequentially. MIL witnessed 11 bps EBITDA margin expansions YoY at 12.0% for the quarter. Adj. net profit came at Rs. 66 Cr vs Rs. 52 Cr same time last year, growth of 27%.
Outlook
We expect EBIDTA margins to inch upwards to ~12.5% in FY19E from 11.9% in FY18E and 10.9% in FY17 supporting the earnings growth of the company. At CMP of Rs. 1,086, MIL is trading at a PE of 25.9/22.2x on FY19E/FY20E earnings respectively. We recommend HOLD on the stock for a target price of Rs. 1175 (24x FY20E).For all recommendations report, click here
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