MygoalMySip

  • Mutual Funds
    • Mutual Funds
    • Equity Fund
    • Debt Fund
    • Hybrid Fund
  • Stocks
    • Stocks
    • Large Cap
    • Mid Cap
    • Small Cap
  • Personal Finance
    • Personal Finance
    • Savings
    • Tax
Menu
  • Mutual Funds
    • Mutual Funds
    • Equity Fund
    • Debt Fund
    • Hybrid Fund
  • Stocks
    • Stocks
    • Large Cap
    • Mid Cap
    • Small Cap
  • Personal Finance
    • Personal Finance
    • Savings
    • Tax
My-Goal-My-Sip-Final-Logo
Search
Close
My-Goal-My-Sip-Final-Logo
  • Mutual Funds
    • Mutual Funds
    • Equity Fund
    • Debt Fund
    • Hybrid Fund
  • Stocks
    • Stocks
    • Large Cap
    • Mid Cap
    • Small Cap
  • Personal Finance
    • Personal Finance
    • Savings
    • Tax
Login or Sing up

Minda Corportaion Ltd.: Should you invest?

April 21, 2022
in Stocks
minda

About the company:

  • Minda Corporation Ltd is one of the leading automotive component manufacturing companies for the OEMs in India with a pan-India presence and international footprint.
  • It is the flagship company of Spark Minda, which was part of the erstwhile Minda Group.
  • The company was formed after a split between the businesses of the Minda brothers in 2012 and was named Minda Industries Ltd and Minda Corporation Ltd respectively. Both the companies are listed on the exchanges.
  • Minda Corporation Limited is a diversified company with a product portfolio encompassing from Mechanical & Electronic Security System, Door System, Electronic Controllers for Electric Vehicles, Plastic Interiors and for Auto OEM`s across the Globe.
HeadquarterNoida, Uttar Pradesh
SectorAuto Ancillaries
Chairman & CEOMr. Ashok Minda

Area of Operation:

• For the technological edge, the company has entered into strategic alliances and technical collaborations with leading international companies and acquired businesses across the globe. This has provided Spark Minda with the cutting-edge in product design and technology to meet strict international quality standards.
• The Company is one of the largest suppliers of 2 wheeler, 3 wheeler, and Off-Road vehicles Electronic & Mechanical Security System to OEMs and exports about 20% of its products to the USA, UK, Europe & South East Asia and ASEAN countries.
• It has manufacturing facilities in India, South-East Asia, and Europe.

minda

Board of Committees:

The ratio of remuneration of CEO, Mr. Ashok Minda to the median remuneration of employees for the financial year 2020-21 is coming out to be 85 times, whereas for the CFO it is 64 times and for Mr. Aakash Minda it is 20times.

Subsidiaries:

Huge subsidiary group of more than 15+ companies across different domains of its product portfolios. Also has a considerable stake in making foreign companies across globes for its smooth functioning of manufacturing and exports.

Competitors:

• Sansera Engineering Ltd. (Market Cap of Rs.3900cr)
• Suprajit Engineering Ltd. (Market Cap of Rs.5500cr)
• Motherson Sumi Systems Ltd. (Market Cap of Rs.81,900)

Shareholding pattern:

• Mr.Ashok Minda is the single largest shareholder with 34% share holding in the company.
• LIC of India holds around 2% stake in the company.
• The DIIs or the Mutual Fund groups have substantially increased thier holdings in the company.

Auto Component Industry:

• The Indian auto-components industry has experienced healthy growth over the last few years. The auto-components industry expanded by a CAGR of 3.28% over FY16 to FY20 to reach US$ 45.90 billion in FY21. The industry is expected to reach US$ 200 billion by FY26.
• Auto-components industry account for 2.3% of India’s Gross Domestic Product (GDP) and employs as many as 1.5 million people directly and indirectly.
• The rapidly globalising world is opening newer opportunities for the transportation industry, especially while it makes a shift towards electric, electronic and hybrid cars, which are deemed more efficient, safe, and reliable mode of transportation.
• The Indian auto-components industry is set to become the third largest in the world by 2025.
• The growth of the this industry is directly propotional to the growth of the Automobile industry in the world.

Profit and Loss Statement:

Consolidated P&L (in Rs.Crores):

 Mar-16Mar-17Mar-18Mar-19Mar-20Mar-21
Revenue from Operations2,4352,0602,5943,0922,2232,354
Expenses2,2061,8682,3162,7972,3092,189
Operating Profit229192278295-86166
Profit before tax147131191236-16084
Net Profit107102143169-20053
EPS in Rs.5.124.886.827.45-8.792.21

Consolidated P&L (Change %)

 Mar-16Mar-17Mar-18Mar-19Mar-20Mar-21Moving Avergae
Revenue from Operations–-15%26%19%-28%6%1.50%
Expenses–-15%24%21%-17%-5%1.36%
Operating Profit–-16%45%6%-129%-293%-77.49%
Profit before Tax–-11%46%24%-168%-153%-52.36%
Net Profit–-5%40%18%-218%-127%-58.23%
EPS in Rs–-5%40%9%-218%-125%-59.76%

Key Pointers:

  1. Expenses of the company majorly include 60% Material cost, 16% Employee cost and just 8% Manufacturing cost.
  2. Material cost consist of the major chunk of the expenses in this industry.
  3. Financial year March-20 was the most hit by the pandemic and all these mentioned companies gave a negative return.
  4. Minda Corporation had a worst impact on their financials in FY ending 2020.
  5. The company has delivered a poor sales growth of just 1.50% over past five years which is least among its peers and below par than the Industry CAGR of 3.28%.
  6. Poor Operating profit and Net profit returns.
  7. After poor 2020 performance, company has started recovering.
  8. Consistantly decreasing EPS.

Consolidated Balance Sheet (in Rs.Crores)

 Mar-16Mar-17Mar-18Mar-19Mar-20Mar-21
Equity Capital614246505052
Reserves5075806941,1459261,095
Borrowings543549723681620528
Trade Payables424261440410509485
Total Liabilities1,7711,5482,0512,4422,3272,328
Fixed Assets1,7711,5482,0512,4422,3272,328
Investments5126139165176180
Other Assets 1,0348181,1841,5241,5521,517
Cash Equivalents883326353472499
Loans n Advances1727792125270151
Total Assets1,7711,5482,0512,4422,3272,328

Standalone Cash Flow (in Rs.Crores)

 Mar-16Mar-17Mar-18Mar-19Mar-20Mar-21
Cash from Operating Activity226487020945086
Profit from operations254206289312272215
Inventory-49-123-146032-57
Payables4113180-319243
Working capital changes13-126-174-42231-108
Direct taxes-41-31-45-61-52-21
Cash from Investing Activity-158-158-200-402-137-192
Fixed assets purchased-98-158-196-120-148-135
Interest Recieved36284725
Other investing items-314-1-316-38-86
Cash from Financing Activity-2967122203-24965
Proceeds from shares200306082
Interest Paid-33-24-36-40-40-32
Dividend Paid-10-12-14-18-20-7
Repayment of borrowings000-122-231-93
Net Cash Flow39-43-81164-42

Financial Ratios:

Stock Price:

1. Current Price₹ 194.65
2. Market Cap₹ 4,646 Cr
3. Yearly fluctuation₹ 90 – 214

Ratios:

 P/EROCEROEOp.Margin 
Minda Corportaion Ltd.45.77.5%4.97%10.69%
Sansera Engineering Ltd4012.6%11.60%19.19%
Suprajit Engineering Ltd28.616.6%15.50%16.47%
Motherson Sumi Systems Ltd28.28.5%8.97%8.17%
Auto Ancillaries Industry46.88–––

Key Points:

  1. Company has a significance presence across the globe. It deals with high range of product portfolio.
  2. The Indian Auto-Ancillaries industry has experienced healthy growth over the last few years and is expected to grow in multiples over the next few years.
  3. The DIIs or the Mutual Fund groups have substantially increased thier holdings in the company.
  4. Company has started to recover from its drastic poor financials for PY 19-20 Minda Corp has reported a poor sales growth over the last few years when compared to the industry and its peers.
  5. They have mainted their balance sheet quiet well, overall numbers seems good.
  6. Warning: Company has a negative net cash flow. Also the moving average of the net cash flow of the company is -42.6%
  7. In the last financial year they have struggled to generate cash from thier operating activities.
  8. Irrespective of repaying some of their loans thier cash flow seems to on the poor side.
  9. In this size of market cap where Sansera & Suprajit are performing quite well, Minda Corp seems to be lagging.
  10. The ratios of the company seems to be on a recoving trend but will take time. At this point of time the overall financials seems a bit week.

Disclaimer: This shouldn’t be construed as a stock recommendation, investors discretion is advised while investing.

Read Next: Adani Wilmar: Should You Invest?

For more information, reach us at [email protected]

Team, MyGoalMySip.

ShareTweetPin

Related Posts

Adani Group: Mutual Fund Holdings
Stocks

Adani Group: Mutual Fund Holdings

Data as of 31.12.2022 Almost all the Adani stocks have seen reduced holdings, barring a few: 1. Adani Power: Only...

January 28, 2023
hdfc
Stocks

The Amalgamation of HDFC Ltd. and HDFC Bank: Is this a Skyscraping Deal?

On April 4, HDFC and HDFC Bank announced that their boards of directors had approved an all-stock merger of the...

November 4, 2022
ltd
Stocks

Food Wars: Devyani International Ltd vs. Restaurant Brands Asia Ltd vs. Jubilant FoodWorks Ltd.

Devyani International Ltd. Devyani International Limited (DIL) is a multifaceted quick-service restaurant (QSR) operator that was founded in 1991. It...

November 3, 2022
market
Personal Finance

What to do when markets are volatile?

As I write this article on the 4th of July, the NIFTY50 closed at 1583.35, which is a 10.16% fall...

November 9, 2022
Next Post
pw

PW Insider: February 2022 Edition

exide

Exide Industries Ltd.: Should you invest?

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

Accounts Aggregator Framework

October 13, 2022
equity

Equity investments may screw your short-term financial goals.

January 19, 2022
PW Insider: July 2022 Edition

PW Insider: July 2022 Edition

August 20, 2022
crypto

Crypto Crash

January 28, 2023

subscRibe!

Categories

  • Books
    • Monthly Journal
  • Debt Fund
  • Equity Fund
  • Hybrid Fund
  • Large Cap
  • Learn
  • Mid Cap
  • Mutual Funds
  • Personal Finance
  • Savings
  • Small Cap
  • Stocks
  • Tax
  • Uncategorized

Instagram

About Us

MyGoalMySip is an Online Mutual fund investment platform powered by Prudent Wealth. As an investor, it might be hard to find the perfect investment opportunity; therefore, we’re here to help you make an informed decision.

Our goal is to educate people and make them financially literate, and at the same time guide you in your investment journey, in short MyGoalMySip is your investment buddy.

Read More
Facebook Twitter Youtube Linkedin

Quick Links

  • Books
  • Learn
  • Monthly journal
  • Merchandise

    Copyright © 2023 MygoalMySip | All Rights Reserved

    About Us

    MyGoalMySip is an Online Mutual fund investment platform powered by Prudent Wealth. As an investor, it might be hard to find the perfect investment opportunity; therefore, we’re here to help you make an informed decision.

    Our goal is to educate people and make them financially literate, and at the same time guide you in your investment journey, in short MyGoalMySip is your investment buddy.

    Read More
    Facebook Twitter Youtube Linkedin

    Quick Links

    • Books
    • Learn
    • Monthly journal
    • Merchandise

      Copyright © 2023 MygoalMySip | All Rights Reserved