MINDA CORPERATION

MARKET CAPITALISATION 9824.97Cr

ENTERPRISE VALUE 10292.69Cr.
P/E 35.29
CURRENT PRICE 411.60
OWNER MR. ASHOKA MINDA

ABOUT:

Minda Corporation Ltd was incorporated in the year March 11th, 1985 with the name Minda Switch Auto
Private Limited , which was amalgamated with Minda Indusrtries Ltd. for manufacture of Ignition Switches
for Indian Automotive Industry.

In 1996 Minda Switch Auto Private Limited demerged from Minda Industries and they both started working
as separate entities with the name of Minda Corporation and UNO Minda Ltd. Respectively.

Minda Corporation’s is the flagship company of Spark Minda , which was a part of Minda Group which was
formed by Late Shri Shadi Lal Minda Ji known as babuji in 1958.

The Company offers a diverse range of products including Mechatronics, Information and Connected
Systems, Plastics and Interiors, Aftermarket, Electronics Manufacturing Excellence and Spark Minda Green
Mobility. It is one of the largest suppliers of 2 wheeler, 3 wheeler and Off Road vehicles Electronic &
Mechanical Security System.

The Company has 34 plants and offices in India and overseas. In addition, it has a design office located in
Japan.[ Japanese counterpart aimed at producing innovative smart vehicle access systems. As consumer
demand for high-quality products continues to rise, this joint effort will solidify the company’s position as a

pioneering entity in the realm of vehicle access solutions, as stated by Minda Corporation]
COMPANY’S NICHE PRODUCT:

The company is the only in India to have their own- patented Magnetic Shutter for 2-
wheeler application. . They design & manufacture immobilizers for 2 wheel vehicle
applications and also has patent for Immobilizer application for vehicles operating with
drained or no battery condition. They are also the first company in India to develop a
controller for e- bikes.

SECTOR OVERVIEW:
The Indian automobile industry has emerged as a key indicator of the country's economic
performance and technological advancements. With its robust presence in heavy vehicles
manufacturing, India has established itself as a global leader, ranking first in 2 wheeler and
tractors, second in bus manufacturing, third in heavy truck manufacturing and fourth in
passenger vehicle market. With an estimated worth of over $222 billion, the Indian
automotive industry contributes 8% to the country's total exports and accounts for 7.1% of
its GDP.

The Indian automobile industry ended on a positive note in FY23, emerging as a success
story by bouncing back from the challenges posed by the pandemic, subdued demand, and
supply chain constraints.

GROWTH OF OVERALL SECTOR:

PRODUCT DIVISION:

M ECH A TR O N IC S
IN FO R M A TIO N A N D CO N N EC TED
SYSTEM
PLA STIC A N D IN TER IO R S

A FTER M A R KET

SPA R K M IN D A G R EEN M O B ILITY SYSTEM

1. MECHATRONICS:

This is a Company's core business involves the production of a range of security

products, including lockset both mechanical and Keyless etc.

 Security System:
Spark Minda is a leader in the segment of lock and key sets for two-
wheelers in India. Its security system division is a major supplier in
Electronic, Mechanical and Connected Vehicle access control for two-
wheelers (gasoline and electric) and off-road vehicles, with a market
share of more than 40% for the domestic 2W market.
Products under this:

 Key Fobs,
 Start Stop Switch,
 electronic handle lock,
 latch ,
 actuator,
 cable,
 immobiliser.
 Starter Motors and Alternators:
The Company’s Starter Motors and Alternators division caters to several
OEM clients domestically and internationally.
For the construction of starter motors with offset Gear-Reduction
technology (GRS) is employed.

 Die- Casting:
The Die-casting division of the Company is a key producer of Aluminium
and Zinc die-cast and manufactures components for the global
automotive and non-automotive industries.
Products Under This:

 2W Upper Bracket,
 4W compressor housing and assembly(First company in Asia to
supply water cooled compressor housing, single largest supplier of
India, critical in machining.),
 Engine Mounting Bracket etc

 ASEAN business:
The Company’s ASEAN business is conducted through two locally
incorporated subsidiaries namely PT Minda Automotive (Indonesia) and
Minda Vietnam Automotive Co. Ltd.
 The Companies supply a wide range of products to its customers
including:
 Ignition switch (with or without Magnet Shutter),
 Fuel Tank Cap,
 Side Cover Lock,
 Seat Latch / Locks.

It remains a one-stop solution for Lock, Wiring Harness,

Speedometer.

ASEAN business has made total revenue of Rs.34Cr. in FY23.

 MINDA VAST Access System Limited:

Minda VAST Access Systems Private Limited is a 50:50 joint venture
between VAST, USA and Minda Corporation Limited.

Total of Rs.198Cr. of revenue was made if FY23.

2. Information and Connected Systems:

The Company has an extensive range of high-quality products that are tailored to
meet the needs of major Indian and international Original Equipment
Manufacturers (OEMs). The products in this business vertical includes wiring
harness, instrument clusters (speedometers), junction boxes, sensors like location,
temperature, speed and Exhaust Gas Temperature (EGT) sensors.

 Wiring Harness:
The division produces a wide range of wiring harnesses, battery cables,
wiring sets, connectors and terminals. Furthermore, the division offers a
complete solution from design to successive delivery to their customers
with competence.
Power Distribution Unit and Types of wiring harness.

 Minda Instruments Limited:

Minda Instruments Limited (formerly known as Minda Stoneridge
Instruments Limited) is a wholly owned subsidiary of Minda Corporation
 Limited. The strategic move is in line with the company’s vision to grow
in advanced technological products i.e. Sensors & Clusters.

Total revenue from operations of this subsidiary is about Rs.15Cr.

 Furukawa Minda Electric Private Limited:

Furukawa Minda Electric Private Limited (FME) is a 75:25 joint venture
between Furukawa group of Japan and Minda Corporation Limited.
Reputable manufacturer of wiring harnesses and steering roll connectors
for passenger automobiles used by Japanese four-wheeler clients for
their airbag systems.

Total Revenue Minda Corporation get from their this joint venture is
Rs.45Cr.

3. Plastic and Interior:

The Plastic and Interior division was established in 2017 after acquiring expertise in
value added plastic technologies like kinematics and light-weighting from Minda
KTSN.
The division includes a vast product range like:
 air vents, glove boxes,
 centre consoles,
 cup holders,
 ash trays, louvers,
 oil slumps,
 cylinder heads, and battery trays.

4. Aftermarket: ( This is their outsourcing business)

The Company has a strong presence in the Aftermarket space as it markets and sells
all products manufactured by its group companies and also offers certain outsourced
products.
The products include locks, lubricants, filters, clutch plates, bearings, wiper blades,
Brake Shoes, and cables at segments including 2W, 3W, PV, tractors, CV and off-road
vehicles.

5. Spark Minda Green Mobility Systems and Electronic Manufacturing Excellence :

Spark Minda via its 100% wholly owned subsidiary Spark Minda Green Mobility
Systems (SMGM) focuses on products specifically catering to the EV Segment i.e
 Battery Chargers, DC-DC Converters. Apart from this the division also focuses on high
tech products like Telematics and Intelligent Transport System (ITS).

Total revenue they get from spark minda green mobility system subsidiary is Rs.
160Cr.

PRODUCT WISE REVENUE BREAKUP:

REVENUE=4315

13%

31% WIRING HARNESS

LOCKSET
14% DIE CASTING
INSTRUMENT CLUSTER
OTHERS

15%

26%

THEIR PRESENCE:
1. INDIA:
 NORTH( UTTAR PRADESH, DELHI, UTTRAKHAND)
 MADHYA PRADESH
 MAHARASTRA
 GUJARAT
 SOUTH( TAMIL NAIDU, KERALA)
2. OVERSEAS:
 JAPAN
 VIETNAM
 INDONESIA
  EUROPE
 NORTH AMERICA

REVENUE BY GEOGRAPHICAL REGION:

2023 2022 2021 2020

35797

24802

20348
18072

3551
1794 1141 1357

INDIA OVERSEAS

FINANCIAL ANALYSIS:

Indicator Mar '23 Mar '22 Mar '21 Mar '20 Mar '19 Mar '18
Total Revenue 4,315.9 3,000.1 2,401.1 2,857.4 3,127.5 2,609.8
Operating Expenses 3,838.6 2,681.4 2,150.9 2,563.2 2,799.6 2,320.6
Operating Profit 461.5 294.5 217 249.9 292.4 272.9
Operating Profit 10.69% 9.82% 9.04% 8.75% 9.35% 10.46%
Margin %
Total Expenses 4,017.4 2,824.3 2,280.3 2,731 2,936.9 2,431.5
EBIDT 477.3 318.7 250.2 294.2 327.9 289.2
EBIDT margin % 11.06% 10.62% 10.42% 10.30% 10.48% 11.08%
Interest 40.7 30.9 35.8 49.9 49 37.1
Depreciation 138.1 112 93.6 117.9 88.3 73.8
Profit Before Tax 298.5 208.5 120.8 -166.9 208.1 178.3
Tax 4.1 24 31.2 45.4 66.9 48.7
PAT Before 294.4 184.5 89.6 -212.3 141.2 129.6
ExtraOrdinary Items
Net Profit 284.5 191.9 52.8 -199.8 169.2 142.7
Net Profit Margin % 6.84% 6.19% 2.06% -7.54% 4.56% 4.99%
EPS 11.9 8 2.3 -9 7.5 6.8
 1. We can see a rise in revenue from past 2 year which is mainly due to volume increase
and localization of their products. Last year a major demand was seen in EV vehicles
due to there was also a major expand in their ev products which helps to give major
boost to their revenue.
2. Company is recovering at good rate as we can their net profit in FY23 is almost
double of FY22.

BALANCE SHEET:

Indicator Mar '23 Mar '22 Mar '21 Mar '20 Mar '19 Mar '18
Total ShareHolders 1,586.1 1,325.4 1,141.9 975 1,190.4 736
Funds
Minority Interest
Liability
Total Non Current 364.6 234.9 154.5 186 185.6 316.3
Liabilities
Total Current Liabilities 1,268.9 1,006.9 1,028.7 1,167.5 1,071.1 1,002.2
Total Capital Plus 3,224.3 2,571.9 2,329.8 2,328.5 2,451.8 2,059.2
Liabilities
Fixed Assets 1,018 826.6 600.6 568.6 651.6 626.4
Total Non Current 1,640.9 1,026.9 843.6 802.7 1,002.5 930.5
Assets
Total Current Assets 1,583.4 1,545 1,486.2 1,525.8 1,449.3 1,128.7
Total Assets 3,224.3 2,571.9 2,329.8 2,328.5 2,451.8 2,059.2
Contingent Liabilities 95.8 91.6 82.2 66.8 20.4 88.2
plus Commitments
Bonus Equity Share 38.5 38.5 38.5 38.5 38.5 38.5
Capital

CASH FLOW:

Indicator Mar '23 Mar '22 Mar '21 Mar '20 Mar '19 Mar '18
Cash from Operating 387.4 166.8 85.5 450.4 209.4 69.9
Activity
Cash from Investing -428.1 -7.3 -174.2 -137.2 -401.9 -200.2
Activity
Cash from Financing 74.3 -160.8 65.2 -249 203.3 122.1
Activity
Net Cash Flow 33.6 -1.3 -23.5 64.2 10.8 -8.2

1. Cash from operation activity has been growing from last year on positive term means
company is able to fund growth projects, launch new products, pay dividends, reduce
the company's debt

ROE AND ROCE RATIO:

ROE ROCE

20.37%
15.18%
17.35%
13.20%

20.49%
19.38%
12.03% 17.39%
14.21% 14.47%

4.62%

2018 2019 2020 2021 2022 2023

1. ROE of the company is declining over the period

2. We can see decline is ROCE also which indicates that low percentage of company’s
value is returning to stakeholders as profit.

RATIOS:

PARTICULARS 2023 2022 2021 2020 2019 2018

INTEREST COVERAGE 8.06 7.52 4.11 5.24 5.66 5.81
RATIO
DEBT TO EQUITY 0.3 0.3 0.4 0.4 0.4 0.8
CAPEX 2488 1077 1306 1461 1182
EV/EBITDA 11.55 14.19 9.44 4.51 9.10 14.37
MARKETCAP/SALES 1.20 1.66 1.02 0.59 1 1.42

1. Interest Coverage Ratio means higher the ratio, the better position a company holds
to repay it’s interest. As we can see ICR of Minda has seen increasing from past 2
years means company is a it’s better position.

2. Debt to Equity Ratio indicates how much debt a company is using to finance its
assets relative to the value of shareholders' equity and it should not be above 2. So
as we see from past 5 years company’s debt ratio is even below 1 means now they
are financing less from debt and more from equity.

3. A low EV/EBITDA ratio indicates that the company's enterprise value (EV) is
relatively low compared to its EBITDA and it should be below 10 but here the
company’s ev/ebitda is more than 10 which indicates that market potentially is
overvalues the company.

COMPETITORS:

COMPANY MARKET CAPITALISATION NET PROFIT

SAMVARDHANA MOTHERSON 88903 1998
INTERNATIONAL LTD.
BOSCH LTD. 88756 2325
TUBE INVESTEMENT OF INDIA 73870 1321
UNO MINDA 42201 773.5
EXIDE INDUSTRIES 39860 876.68

TECHNICAL ANALYSIS:

PARTICULARS WEEKLY MONTHLY YEARLY

CURRENT PRICE 411.05 411.05 411.05
52 WEEK HIGH 449.95 449.95 449.95
52 WEEK LOW 263.10 263.10 263.10
200 MDA 366.40 366.40 366.40
RSI 57.59 50.77 78.14
ADX 30.57 12 57.64
MACD 20.20 61.68
ICHIMOKU INDICATORS
TENKAN SAN 400.38 412.78 381.48
KIJUN SAN 392.13 411.8 30673
SPAN A 396.25 412.29 344.10
SPAN B 356.53 410.60 251.35
CHIKU SPAN 411.05 412.35 411.05