MINDACORP - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.4

Here’s a comprehensive evaluation of Minda Corporation (MINDACORP), shedding light on its financial position, valuation story, and long-term investment potential

⚙️ Core Financials Review

Return Metrics

ROE: 12.2% and ROCE: 12.7% suggest moderate efficiency — acceptable, but not standout.

Quarterly Earnings

PAT dropped from ₹64.8 Cr. to ₹52.0 Cr. → -26.5% variation, may reflect seasonal softness or margin compression.

EPS: ₹10.7 — decent for its price level, though a bit stretched against valuation.

Debt Profile

Debt-to-equity of 0.73 is on the higher side — watch for refinancing or interest cost implications.

💰 Valuation Indicators

Metric Value Insight

P/E 48.1 Overvalued vs. Industry PE (31.2)

P/B Ratio ~5.56 Fair, but reflects growth expectations

PEG Ratio 3.18 Elevated — price may be decoupled from actual growth

Dividend Yield 0.27% Low — suggests reinvestment focus

Verdict: Trades at a premium despite mid-tier return metrics. Growth must accelerate to justify multiples.

🚘 Business Model & Strategic Strength

Supplier of automotive solutions including electromechanical, telematics, and interior systems.

Benefits from increasing vehicular electrification, IoT integration, and EV shift.

Competitive edge lies in diversification across OEM clients, innovation-led subsystems, and footprint in emerging markets.

📉 Technical Trends

RSI: 45.3 — Neutral range, shows consolidation.

MACD: -2.34 — Slight bearish tone; sideways movement likely.

DMA View

Price flirting with 50-DMA (₹520) and 200-DMA (₹514); support may form around ₹500 levels.

🎯 Entry Zone & Investment Guidance

Entry Zone: ₹495–₹515 — close to DMA supports and recent volume weakness.

Holding View

Suitable for medium-term investors focused on auto component sector.

Valuation risk is present, so prefer staggered accumulation and reassess post next earnings cycle.

Keep a watch on order book expansion, margin consistency, and debt reduction roadmap.

If you’d like, I can compare it with peers like Sona Comstar, Samvardhana Motherson or Endurance Tech to highlight relative valuation and operational positioning. Would that help deepen the thesis?

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