Broker’s Call: Minda Corp (Buy)

Why It Matters

The upgrade underscores the accelerating shift toward premium, electrified automotive components in India, offering investors exposure to higher‑margin growth as EV adoption rises.

Key Takeaways

• Target price ₹650 ($7.8), up from ₹541.65 ($6.5).
• Revenue CAGR 21% FY21‑25; forecast 17% FY26‑29.
• Margins rise to 14‑20% after acquisitions, versus 11% historically.
• ₹2,000‑crore ($241 m) capex for new die‑casting, TFT, EV plants.
• Smart‑key, key‑less and EV harnesses boost content value 2.5‑5×.

Pulse Analysis

The Indian automotive component market is entering a premiumization phase, and Minda Corp is positioning itself at the forefront. 5). The valuation reflects a DCF‑derived implied P/E of 29× on FY28 earnings, a multiple that remains attractive given the company's robust historical performance.

As OEMs increasingly demand higher‑value modules such as smart‑key systems and advanced instrument clusters, Minda's product portfolio aligns well with this upward trend. Strategic acquisitions over the past five years have reshaped Minda's revenue mix, moving it away from low‑margin two‑wheel components toward higher‑margin system solutions. 5‑4× uplift in content value, while EV wiring harnesses command nearly three times the value of conventional ICE harnesses. These moves have lifted subsidiary margins to 14‑20%, compared with the group's historical 11% margin, and have driven a 21% revenue CAGR and a striking 48% PAT CAGR from FY21 to FY25.

Looking ahead, Minda plans a ₹2,000‑crore ($241 million) capex program focused on greenfield die‑casting plants in Pune and Greater Noida, as well as TFT instrument‑cluster facilities and joint‑venture expansions. This capital intensity aims to capture the growing demand for electric‑vehicle components and advanced driver‑assistance systems, sectors projected to expand at double‑digit rates in India. While execution risk and macroeconomic volatility remain, the company's forward‑looking revenue, EBITDA and PAT growth forecasts of 17‑29% through FY29 suggest a durable earnings runway, reinforcing the broker's bullish stance.