Buy Minda Corporation, target price Rs 105: ICICI Direct

ICICI Direct has buy call on Minda Corporation with a target price of Rs 105. The current market price of Minda Corporation Ltd. is Rs 90.65.

Minda Corporation Ltd., incorporated in the year 1985, is a Small Cap company (having a market cap of Rs 2059.77 Crore) operating in Auto Ancillaries sector.

Financials
For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 656.10 Crore, up 268.68 % from last quarter Sales of Rs 177.96 Crore and down -10.79 % from last year same quarter Sales of Rs 735.45 Crore Company reported net profit after tax of Rs 27.47 Crore in latest quarter.

Investment Rationale
With a history of capital efficient operations, net debt free B/S (September 2020) and presence across new model launches like Mahindra Thar & Bajaj Chetak, it believes the risk-reward is favourable at MCL. Hence, it assigns a BUY rating.

Promoter/FII Holdings
Promoters held 70.9 per cent stake in the company as of June 30, 2020, while FIIs held 10.26 per cent, DIIs 7.47 per cent and public and others 11.4 per cent.