Minda Corp: EV Revolution Leader – consistent Growth & Flash Electronics Synergy

January 19, 2025

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Electric Vehicles

valuePicker

Minda Corporation Ltd. – Investment Analysis

Market Cap

₹13,950 Cr.

Current Price

₹584

52-Week Range

₹653 / ₹366

P/E Ratio

53.3

Book Value

₹87.9

ROCE

15.2%

ROE

12.8%

Dividend Yield

0.24%

Business Overview

Minda Corporation Ltd. is a leading auto component manufacturer with a diversified portfolio spanning traditional internal combustion engine (ICE) components and electric vehicle (EV) systems. The company has been enhancing its product offerings and geographical reach to leverage growth opportunities in India’s evolving automotive sector.

Strategic Growth Drivers

EV-Focused Strategic Partnership

• 49% stake acquisition in Flash Electronics (₹3,100 Cr. enterprise value)

• Key Products: EV traction motors, motor controllers, BLDC motors, IDU mid-drive motors

• Kit values for e2W powertrains: ₹30,000–₹35,000

Revenue Diversification

• EV products: 20% of Flash Electronics’ revenue

• International revenue: 24% of total revenue

• 8 global manufacturing plants including 2 in Europe

Financial Projections

Metric	Value
Sales Growth (3Y CAGR)	25.2%
Profit Growth (3Y)	34.5%
Projected EPS (FY25)	₹11.5
Target P/E	55x
Price Target	₹640

Competitive Landscape

Key Competitors

• Bosch and Varroc Engineering

• Delphi and Valeo

Strategic Customers

• Global OEMs: Audi, BMW, Ducati, Tata, Yamaha

Risk Factors

Macroeconomic Risks

Currency exchange rate fluctuations impacting export profitability

Adoption Risk

Dependence on EV penetration rates and market dynamics

Supply Chain

Exposure to global semiconductor and raw material shortages

Investment Thesis

Minda Corporation is strategically positioned to capitalize on India’s growing EV landscape. The Flash Electronics acquisition diversifies revenue streams and solidifies leadership in EV powertrain systems. The company’s prudent financial management, sustained R&D investment, and partnerships with leading OEMs highlight its long-term growth potential.

Disclaimer

This report is for informational purposes only. It is not intended to serve as financial or investment advice. Please consult your financial advisor before making any investment decisions.