Buy Minda Corporation; target of Rs 600: Emkay Global Financial

Emkay Global Financial' research report on Minda Corporation

We attended Minda’s Analyst Meet and visited Spark Minda Technical Centre (SMIT) in Pune and its Flash Electronics plant; the management outlined its ‘Vision 2030’ at the Meet. Our visit highlighted Minda’s ongoing transformation from a traditional component maker into a systems solutions provider, underpinned by 3x higher R&D spend over the last 4Y, a growing IP portfolio (>310 in FY25), and strong EV-ready capabilities. Strategic priorities include expanding capacity with ~Rs20bn planned capex till FY30, scaling adjacencies via JVs (sunroofs with HCMF, switches with Toyodenso, EV components with SANCO), and deepening engagement with global OEMs across the 2W/3W, PV, CV and aftermarket segments. The roadmap aligns well with mobility megatrends, such as electrification, connectivity, software-defined vehicles, and premiumization, while Flash’s integration strengthens its electronics and powertrain capabilities in EVs along with a global footprint.

Outlook

Given that Minda is aiming for ~Rs175bn revenue (~3.5x FY25), >12.5% EBITDA margin (~11% in FY25), >25% RoCE by FY30 (~18% in FY25), and 0.3x net debt/equity (vs 0.6x in FY25), we believe it is well positioned as a structural compounder (refer to our initiating coverage note: A ‘Spark’ for Structural Outperformance); maintain BUY, with unchanged estimates/TP (Rs600), valuing it at 30x Sep-27E PER.

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Minda Corporation - 24 - 09 - 2025 - emkay