Minda Corporation Ltd – Investor Meet and Plant Visit
Minda Corporation is one of India’s leading manufacturers of automotive components, offering a diverse portfolio that includes Electronic & Mechanical Security Systems, Die Casting, Key Solutions, Telematics, ITS & IoT, Wiring Harnesses, SRCs, Components, Instrument Clusters, Sensors, and Interior Plastics. Its products serve leading manufacturers across Passenger Vehicles, Commercial Vehicles, Motorcycles & Scooters, and Off-road Vehicles. The $610 Mn Group employs over 16,000 people and has established multiple JVs with global partners from the USA, Japan, Italy, Uzbekistan, and China.
Management Interactions
• Ashok Minda (Chairman & GCEO): Emphasised Minda Corp’s transition towards becoming a “system solutions provider” with a strong focus on electrification, premiumisation, and exports. Reiterated the 2030 vision of achieving Rs 17,500 Cr revenue (~3.5x growth), with deleveraging and sustainable mobility at the core.
• D. Suresh (Group CTO): Highlighted R&D priorities, including the shift from mechatronics to electronics/software, investments in ADAS, cybersecurity, software-defined vehicles (SDVs), and EV electronics. Stressed the importance of ~4% R&D spend, 310+ patents, and new-age product launches.
• Ajay Agarwal (President – Finance & Strategy): Focused on financial discipline, targeting debt reduction to 0.3x by FY30, internal accruals-led capex (~Rs 2,000 Cr over 5 years), and improved working capital management (53 days in FY22 → 31 days in FY25).
• Aakash Minda (Executive Director): Shared the vision for globalisation and marketing, with emphasis on premium products (sunroofs, TFT clusters, smart access systems), scaling exports (target Rs 1,500 Cr by FY30), and leveraging JV synergies with Toyodenso (switches) and HCMF (sunroof/PLG).
• Mr. Sanjeev Vasdev (CEO of Flash Electronics): Highlighted ongoing development of next-generation Ferrite and Self-Excited Synchronous Motors (SESM), along with Integrated Drive Units (IDU), targeted for the 2025–2030 horizon. These innovations aim to replace rare-earth permanent magnet motors with ferrite-based and SESM solutions, thereby reducing reliance on costly and geopolitically sensitive NdFeB magnets.
Valuation & Recommendation
Minda Corporation is evolving from a conventional auto component manufacturer into a high-value, technology-driven mobility solutions provider. The company is backed by robust financials, sticky OEM relationships, rising profit contribution from Associates (notably Flash Electronics), and well-defined growth levers across both EV and ICE segments, making it a compelling long-term compounding opportunity. Given the strong growth trajectory and healthy balance sheet, the stock is valued at a 36x multiple on FY28E EPS (unchanged), arriving at a target price of Rs 690/share (vs. Rs 600 earlier), implying a 19% upside from CMP. The outlook remains positive, supported by robust new order wins, a strong order book, and management’s confidence in outperforming industry growth through both organic and inorganic initiatives. Over FY25–28E, Revenue/EBITDA/PAT is expected to grow at a CAGR of 13%/16%/22%.
