Stock To Buy: Auto Component Stock Hits 2nd 52-Week High, Buy For TP Rs 585: Analysts

Small cap company engaged in auto component & equipment industry, Minda Corporation Ltd shares hit 2nd 52-week high on BSE today. Current market price of Minda Corporation shares is Rs 584.20 per share. Minda Corporation shares offered attractive return of 26% in last 1-month and soared 170% in last 2-years. The company's market capitalisation stood at Rs 14,008.86 crore. Check details below:

Minda Corporation Shares Performance: The 52-week high price of Minda Corporation shares on BSE is Rs 589.95 per share (as on 23/08/2024) and 52-week low price is Rs 304.35 per share (as on 28/08/2023). Minda Corporation shares offered return of 13% in last 1-week only, gained 41% in last 3-months, and zoomed 86% in last 1-year. In last 3-years, Minda Corporation stock surged 396% and 775% in last 5-years.

Should You Buy Minda Corporation Shares? Nuvama recommended investors to buy Minda Corporation share for a target price of Rs 585 per share. Meanwhile, another brokerage firm Axis Securities too suggested buy call to Minda Corporation shares with target price of Rs 575 per share.

Minda Corporation Inks JV Agreement With HCMF: The company via its BSE filing declared, "Reaffirming our commitment to delivering products backed by cutting-edge technology, your company signed a joint venture agreement with HCMF (Taiwan) to manufacture automotive sunroofs and closure systems, bringing next-gen advanced products and enhancing the product portfolio of the company offering to PV segment." Additionally, we formed a strategic partnership with a global Japanese player to manufacture smart vehicle access systems for two-wheelers, positioning us as a complete solution provider, added the exchange filing.

Our order book remains strong, with lifetime orders acrosssegments exceeding Rs. 10,000 crores, over 30% of which are from the EV segment. This indicates the increasing adoption and preparedness of our products for Electric Vehicles, said Ashok Minda, Chairman & Group CEO.

Our balance sheet remainsrobust, with a significant improvement in our net debt-to-equity ratio, which improved to 0.08x in FY24 from 0.25x in FY23. Additionally, our return on capital employed stands at an impressive 20%, reflecting our commitment to optimal utilization of the allocated capital, added Ashok Minda.

Minda Corporation Financials: The company declared its net sales at Rs 1,192.39 crore for the quarter ended June 2024, up 10.97% as against Rs. 1,074.51 crore declared in the corresponding quarter of last year. Minda Corporation announced its net profit for June 2024 quarter at Rs. 64.20 crore, up 42% as compared to Rs. 45.21 crore declared in the similar quarter of last year. Its EBITDA for June 2024 stood at Rs. 140.12 crore, up 20.18% from Rs. 116.59 crore in June 2023. Minda Corp EPS zoomed to Rs. 2.73 for June 2024 from Rs. 1.92 in June 2023.

Disclaimer:

The stock has been picked from the brokerage report of Axis Securities and Nuvama. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.