Quarterly earnings impact! Minda Industries share price hits a new 52-week high amid robust Q4 results – Check what brokerages say

On the back of strong quarter four results, Minda Industries hit a new 52-week high to Rs 641.65 per share, the stock jumped over five per cent on the BSE intraday on Tuesday. Moreover, the brokerages too are bullish on Minda Industries, gives a Buy recommendation.  

The company reported consolidated profit after tax at Rs 140 crores with a year-on-year growth of 9.7 times, while consolidated revenue of Rs 2238 crores, with YoY growth of 49 per cent. The company said, it completed the merger of Harita Seatings Systems with Minda Industries. 

Minda Industries closed at over four per cent to Rs 634.55 per share, while it touched a day’s low of Rs 610.25 per share. The company shares grew around 12 per cent in the last five sessions, while surged over 21 per cent in the last one month. 

Axis Capital being bullish on the stock, revised its target price to Rs 650 from Rs 550 per share amid strong quarter-four performance. The brokerage firm expects a faster-than-anticipated ramp-up of new products, especially two-wheeler alloy wheels, sensors especially. 

Axis Capital raise FY22-23E EPS by 12-15 per cent on the higher revenue assumptions on potential market share gain and ramp-up of new products.  

The current valuation at 25x FY23E PE is on the higher side, but the brokerage maintains a positive stance given the company’s strong OEM relationships, large addressable market size, and stellar past execution track record which gives the brokerage comfort on its ability to ramp up new products and businesses.  

Similarly, Antique Stock Broking expects Minda Industries to benefit from the cyclical recovery in domestic two-wheelers and personal vehicles sales over the next two years, given its large dependence on domestic OEM segment. 

The brokerage firm maintains Buy recommendation and sets a target of Rs 700 per share with an upside of 15 per cent. It expects the company to register revenue CAGR (compound annual growth rate) of 17 per cent, EBITDA CAGR of 27 per cent and EPS CAGR of 48 per cent over FY20-23E.