The plant will be set up in Maharashtra at a total outlay of Rs500cr
The Board of Directors of Indian auto ancillary major, Minda Industries Limited (MIL), approved proposal to set up a new two wheeler (2W) alloy wheel manufacturing plant in Maharashtra. The plant will cater to MIL’s domestic OEM clients. Total outlay for the project will be Rs500cr, of which Rs300cr will be spent in Phase-I over next two years. The remaining amount will be spent on Phase-II thereafter. Production from the plant will start from November 2019. MIL will fund the expansion with a mix of debt and internal accruals. As on March 31, 2018, MIL had consolidated debt-equity ratio of 0.44x and cash and cash equivalents worth Rs160cr.
MIL has emerged a strong performer and has benefited from consolidation of group entities with itself, strong demand for its products led by a buoyant automotive market and a reducing debt profile. MIL beat street estimates in Q1FY19 delivering 51% yoy revenue growth, 68% yoy EBITDA growth and 120bps yoy margin expansion. Reported PAT was up 46% yoy. It also announced a 2:1 bonus issue. Over the past five years, revenue, EBITDA and PAT for MIL have grown at 27%, 42% and 62% CAGR respectively. D/E ratio has declined from 0.6x in FY13 to 0.4x in FY18, while ROCE has grown from 12% to 25%. Hence, it deserves the premium valuations (23x FY20E EPS) that it is currently trading at.
MIL is leader in automotive switches and leading player in horns and lighting, serving majorly to the OEMs (91% of revenue in Q1FY19). MIL’s revenue contribution from segments in Q1FY19 was – switches (41%), lighting (22%), acoustics (14%) and others (23%). It enjoys 65% and 47% market share in switches and acoustics segment respectively in India.
Minda Industries Ltd ended at Rs361 down by Rs1.85 or 0.51% from its previous closing of Rs362.85 on the BSE. The scrip opened at Rs364.05 and touched a high and low of Rs364.35 and Rs345.45 respectively. A total of 1,02,010 (NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs9,472.59cr.
The Board of Directors of Indian auto ancillary major, Minda Industries Limited (MIL), approved proposal to set up a new two wheeler (2W) alloy wheel manufacturing plant in Maharashtra. The plant will cater to MIL’s domestic OEM clients. Total outlay for the project will be Rs500cr, of which Rs300cr will be spent in Phase-I over next two years. The remaining amount will be spent on Phase-II thereafter. Production from the plant will start from November 2019. MIL will fund the expansion with a mix of debt and internal accruals. As on March 31, 2018, MIL had consolidated debt-equity ratio of 0.44x and cash and cash equivalents worth Rs160cr.MIL has emerged a strong performer and has benefited from consolidation of group entities with itself, strong demand for its products led by a buoyant automotive market and a reducing debt profile. MIL beat street estimates in Q1FY19 delivering 51% yoy revenue growth, 68% yoy EBITDA growth and 120bps yoy margin expansion. Reported PAT was up 46% yoy. It also announced a 2:1 bonus issue. Over the past five years, revenue, EBITDA and PAT for MIL have grown at 27%, 42% and 62% CAGR respectively. D/E ratio has declined from 0.6x in FY13 to 0.4x in FY18, while ROCE has grown from 12% to 25%. Hence, it deserves the premium valuations (23x FY20E EPS) that it is currently trading at.
MIL is leader in automotive switches and leading player in horns and lighting, serving majorly to the OEMs (91% of revenue in Q1FY19). MIL’s revenue contribution from segments in Q1FY19 was – switches (41%), lighting (22%), acoustics (14%) and others (23%). It enjoys 65% and 47% market share in switches and acoustics segment respectively in India.
Minda Industries Ltd ended at Rs361 down by Rs1.85 or 0.51% from its previous closing of Rs362.85 on the BSE. The scrip opened at Rs364.05 and touched a high and low of Rs364.35 and Rs345.45 respectively. A total of 1,02,010 (NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs9,472.59cr.
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