MINDACORP - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 3.7

Minda Corporation has strong growth potential in the auto ancillary space, especially in EV and smart mobility, but its valuation is stretched and return metrics are moderate. Accumulation is best near support zones with a long-term view.

📊 Financial Overview

• Revenue: ₹5,250 Cr (TTM) — consistent growth across product segments

  Value Research

• Profitability: PAT at ₹41.8 Cr, up from ₹33.8 Cr QoQ; EPS at ₹8.20
• Margins: ROCE at 11.8%, ROE at 11.2% — moderate capital efficiency

  Value Research

• Debt Profile: Debt-to-equity ratio of 0.85 — manageable but notable
• Dividend Yield: 0.25% — modest income return

📈 Valuation Metrics

• P/E Ratio: 68.6 — significantly above industry average of 32.6

  Value Research

• P/B Ratio: ~7.1 — premium valuation relative to book value ₹79.7
• PEG Ratio: 8.24 — indicates overvaluation relative to growth
• Intrinsic Value: Estimated around ₹500–₹520 based on normalized earnings

🏢 Business Model & Competitive Edge

• Core Operations: Supplier of smart mobility solutions including electronic components, safety systems, and EV powertrains

  Spark Minda

• Moat: Strategic partnerships with OEMs and innovation in connected vehicle technologies
• Growth Drivers: EV adoption, smart key systems, rooftop solar expansion, and localization of components

  Spark Minda

📌 Entry Zone Recommendation

• Suggested Entry: ₹520–₹540 — near DMA200 and RSI support zone
• Technical Indicators: RSI at 49.8 (neutral), MACD positive — mild bullish momentum

📈 Long-Term Holding Guidance

• Hold for long-term if accumulated near support; monitor margin trends and EV segment growth
• Valuation needs to cool before aggressive accumulation

✅ Positive

• Consistent revenue and profit growth
• Strong presence in EV and smart mobility segments
• DII holding increased by 0.35%
• Highest-ever EBITDA margin of 11.5% in Q3 FY25

  Yahoo Finance

⚠️ Limitation

• High P/E and PEG ratios
• Moderate ROE and ROCE
• FII holding declined by 0.11%

📰 Company Negative News

• Qtr profit variation of -18.9% due to margin pressure and input costs

🌟 Company Positive News

• Strategic equity partnerships in EV powertrains and rooftop solar expansion

  Spark Minda

• Strong operational performance and margin improvement in Q3 FY25

  Yahoo Finance

🏭 Industry

• Auto ancillaries industry P/E at 32.6 — Minda trades at a premium
• Sector driven by EV adoption, safety systems, and OEM demand

🧾 Conclusion

• Minda Corporation is a growth-oriented auto ancillary with strong innovation but stretched valuation
• Accumulate cautiously near support zones; long-term outlook supported by EV and smart mobility focus

Sources

Value Research

+2