Auto ancillary stock to buy: SBI Securities bullish on this stock after Q4FY24 results, check target
Auto stock to buy: According to the brokerage, the stock can touch the level of 460-500 in the mid-term.
Domestic market indexes Nifty50 and Sensex lost the most ground on Friday, May 24, after reaching record highs for the second consecutive session after a drop in IT companies on concerns that the US Federal Reserve will not decrease interest rates for some time.
In the fourth and last week of May, investors will pay close attention to the final batch of January-March quarter results for fiscal 2023-24 (Q4FY24), election voter turnout, local and global macroeconomic data, foreign capital inflows, crude oil prices, and global signals.
Stock to buy: Meanwhile brokerage SBI Securities suggests buying auto stock Minda Corporation after the company reported its strong fourth-quarter results of FY24. According to the brokerage, the stock can touch the level of 460-500 in the mid-term.
Minda Corp Q4 earnings
Minda Corporation, an auto components maker, announced on Wednesday, May 22, that its profit after tax (PAT) grew 27 per cent to Rs 71 crore in the fourth quarter ended March 2024. Last year, the business posted a PAT of Rs 56 crore.
Operating revenue grew to Rs 1,215 crore in the fourth quarter, up from Rs 1,075 crore in the previous year, Minda Corp said in a statement.
Minda Corp share: Price target
According to SBI Securities, at the current price, the stock is trading at FY25E P/E 32.5x. The domestic 2W industry is expected to grow in double digits in FY25E. The brokerage expects the stock to reach Rs 460-500 in the medium term. On May 24, the stock closed at the level of 418. From the current price, the stock can give further returns of more than 20 per cent.
Minda Corp share price history
The 52 weeks high of the stock is 449 and the low is 270.25. The market cap of the company is Rs 9,993.52 crore. Talking about the return of the stock, it has increased by 8.60 per cent in the year 2024 whereas, in the last month, it has increased by more than 23 per cent. The return of shares has been 50 per cent in one year, 108 per cent in 2 years, and 271 per cent in 3 years.
Minda Corp shares last traded at Rs 418 each, up 0.61 per cent on BSE on Friday, May 24.
The views/suggestions/advices expressed here in this article are solely by investment experts. Zee Business suggests its readers consult their investment advisers before making any financial decision.
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