MINDACORP - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 20 Dec 25, 11:15 pm

Fundamental Rating: 3.1

• 📈 Revenue Growth: Quarterly PAT at ₹47 Cr vs ₹41.8 Cr previous, but YoY profit variation -25.0%
• 💰 Profit Margins: Moderate, ROE at 11.2% and ROCE at 11.8%
• ⚖️ Debt Ratio: Debt-to-equity at 0.75, moderately leveraged
• 💵 Cash Flows: EPS of ₹7.55, modest earnings relative to valuation
• 📊 ROE/ROCE: Reasonable but below industry leaders
• 📉 Valuation: P/E 78.8 vs Industry PE 30.0, significantly overvalued
• 📚 Book Value: ₹87.2, P/B ~6.8
• 📈 PEG Ratio: 9.46, indicates stretched valuation relative to growth
• 🚗 Business Model: Auto component manufacturer with diversified product portfolio across safety, security, and electronics
• 🛡️ Competitive Advantage: Strong OEM relationships, diversified product lines, and presence in both domestic and export markets

Positive

• ✅ Diversified auto component portfolio
• ✅ Strong OEM partnerships
• ✅ Institutional support with DII holdings increased (+0.35%)
• ✅ Technical support near DMA 200 (₹544)

Limitation

• ⚠️ High P/E ratio (78.8) compared to industry average (30.0)
• ⚠️ PEG ratio at 9.46 indicates poor growth relative to valuation
• ⚠️ ROE and ROCE modest compared to peers
• ⚠️ Debt-to-equity at 0.75, leverage risk

Company Negative News

• 📉 Profit variation -25.0%, showing earnings pressure
• 📉 Reduction in foreign institutional investor holdings (-0.11%)

Company Positive News

• 🌍 Expansion in auto electronics and safety systems
• 💡 Quarterly PAT improvement vs previous quarter
• 📈 Increased DII holdings (+0.35%)

Industry

• 💹 Industry PE at 30.0, Minda Corp trades at a steep premium
• 📈 Auto component sector supported by rising demand for EVs and advanced safety systems

Conclusion

Minda Corp shows moderate fundamentals with diversified product offerings and OEM partnerships, but valuations are stretched with high P/E and PEG ratios. Profitability remains modest compared to peers, and leverage adds risk. Entry zone is attractive only near ₹540–560 (close to DMA 200 support). Long-term holding is favorable only if earnings growth accelerates and valuations normalize, supported by demand in EV and safety component segments.

Would you like me to extend this into a peer benchmarking overlay comparing Minda Corp with Bharat Forge, Sundaram Fasteners, and Bosch, or should we run a sector rotation scan to identify stronger compounding opportunities across auto ancillaries and EV component plays?