ICICI Direct has given Buy recommendation for Minda Industries with a target price of Rs. 1050 in its research report issued on May 25, 2022
ICICI Direct’s research report on Minda Industries
Minda Industries (MIL) is India’s largest maker of automotive switches, horns, seats & PV alloy wheels and third largest automotive lighting player. FY22 segment mix – 4-W 53%, 2-W 47%; switches, lighting, castings, horns and seats comprised 30%, 21%, 16%, 8% and 11% of sales, respectively • History of vast outperformance vs. user industries riding on growth in kit value, new client and product additions & inorganic acquisitions.
Outlook
Given the recent correction in stock price, MIL is now within our comfortable valuation matrix. Hence, we upgrade the stock from HOLD to BUY. We value the company at a revised target price of Rs 1,050 i.e. 42x P/E (~1x PEG) on FY24E EPS of Rs 25 (previous target Rs 1,115).