Geojit is bullish on Minda industries has recommended buy rating on the stock with a target price of Rs 1324 in its research report dated June 06, 2018.
Geojit's research report on Minda industries
Minda industries Ltd (MIL) is a diversified auto ancillary supplier, manufacturing products such as switches, horns, lights & others, having a leadership position in switch business with a market share of 67%. Q4FY18 consolidated revenue grew by 53%YoY led by consolidation, switching & other divisions. Standalone revenue grew by 26%YoY. EBITDA margin improved by 68bps on account of operating efficiency and higher capacity utilization in other business. Scaling up the product line in Alloy wheels, Infotainment & Reverse parking system will drive growth for the company Revenue to grow at 20% CAGR over FY18-20E led by higher contribution by core segments and incremental revenue from new products. Strong outlook in the domestic auto market & outperforming the industry growth by twice in FY18 underlines MIL.
Outlook
We value at 26x on FY20E EPS and arrive at a target price of Rs1,324 and upgrade to buy rating.
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