Minda Corporation posts its strongest quarterly revenue and unveils a bold expansion plan targeting ₹17,500 crore by FY30, supported by a bullish broker call with a target price of ₹926 amidst a backdrop of robust growth in auto components and EV systems.
Minda Corporation has drawn a fresh bullish call from a brokerage after posting its strongest quarterly revenue to date and laying out an aggressive growth plan through FY30. According to the report by The Hindu BusinessLine, the stock has a target price of ₹926 against a current market price of ₹719.75, implying meaningful upside if the company sustains its recent momentum.
In the June quarter, Minda Corporation reported revenue of ₹1,850 crore, up 33% year on year and 8% sequentially. Growth was broad-based, with Mechatronics and Aftermarket, as well as Information and Connected Systems, both expanding at a healthy pace. Wiring harness and instrument clusters also grew strongly, reinforcing the company’s exposure to higher-value automotive content as vehicles become more feature-rich and electronically complex.
Operating profit rose 35% to ₹210 crore, while EBITDA margin came in at 11.5%. The brokerage said that was above its estimate, though slightly lower than the previous quarter because of commodity inflation, higher wage and freight costs. Management said most indexed inputs have pass-through arrangements with customers, albeit with a lag of one to two quarters, which should help recover some of the pressure over time.
The company has also set out a longer-term push to expand beyond a conventional component role and become a systems solutions provider. Arthneeti reported that Minda Corporation aims to lift revenue to ₹17,500 crore by FY30, while targeting an EBITDA margin of 12.5% by then. Other reports have said the plan includes about ₹2,000 crore of capital spending over five years, as well as deeper exposure to EV powertrains, smart-access systems, TFT clusters and sunroof systems. The brokerage said these themes, along with higher content per vehicle and market-share gains, support its Buy view.
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