KRChoksey is bullish on Minda Corporation has recommended buy rating on the stock with a target price of Rs 92 in its research report dated August 14, 2020.
KRChoksey's research report on Minda Corporation
Minda Corporation Ltd, consolidated revenue from operations in Q1FY21 declined by 69.53% YoY and (down 66.82% QoQ) to INR 1779.60 Mn, impacted by lockdown. Gross profit margin for Q1FY21 came in at 37.77%. MCL reported EBITDA loss of INR 203.20 Mn compare to positive EBITDA of INR 666.8 Mn. EBTIDA margin for Q1FY21 was negative 11.42% compare to positive EBTIDA margin of 11.42%, significant decline was due to negative operating leverage, product mix and higher fixed cost. MCL reported net loss of INR 354 Mn in Q1FY21 as compare to net profit of 212 Mn in corresponding quarter last year. EPS for the quarter stood at INR (1.59) as against 0.95 in Q1FY20.
Outlook
We expect the recovery in the overall business to happen by H2FY21. We have valued the company at a P/E multiple of 13X on FY22E EPS of INR 7.04 to arrive at a target price of INR 92 per share. We maintain an “BUY” rating on the stock.
For all recommendations report, click here
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