Mehabe score: 3 G Factor: 4 Piotski Score: 5 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 4 and Piotski score of 5.
Description
Minda Corporation is primarily involved in manufacturing of Automobile Components and Parts thereof.(Source : 202003-01 Annual Report Page No:113)Site:MINDACORP
Market Cap:
Rs 3,067 cr
Price:
128.0
Trading pe:
58.1x
Book-value:
48.0/share
Div yield:
0.51 %
Earning yield:
3.80%
Face-value:
2.00/share
52week high:
142.05
52week low:
59.55
Technical Analysis
Stock trades at 128.0, above its 50dma 116.66. It also trades above its 200dma 97.44. The stock remains bullish on techicals
The 52 week high is at 142.05 and the 52week low is at 59.55
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
Weakness
– Stock is trading at 2.68 times its book value
-The company has delivered a poor sales growth of -0.56% over past five years.
– has a low return on equity of 6.62% for last 3 years.
-Dividend payout has been low at 11.61% of profits over last 3 years
-Promoter holding has decreased over last 3 years: -7.32%
Competition
– The industry trades at a mean P/E of 32.0x. WABCO India trades at the industry’s max P/E of 127.27x. MINDACORP trades at a P/E of 58.1x
– Industry’s mean G-Factor is 4.0 while the mean Piotski score is 7.0. MINDACORP has a G-Factor of 4 and Piotski scoreof 5.
– Average 1 month return for industry is 4.2%. The max 1- month return was given by Minda Industries: a return of 17.14 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 794.0 cr compared to Rs 536.0 cr for period ended Mar 2020, a rise of 48.1%
Company reported operating profit of Rs 47.0 cr for period ended Mar 2021, operating profit margin at 5.9 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Mar 2021 was Rs 0.54 compared to Rs 2.07 for previous quarter ended Dec 2020 and Rs -13.19 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 2368.0 cr for period ended Mar 2021 vis-vis sales of Rs 2813.0 cr for the period ended Mar 2020, a fall of 18.8%. The 3 year sales cagr stood at -3.0%.
Operating margins shrank to 7.0% for period ended Mar 2021 vis-vis 9.0% for period ended Mar 2020, contraction of 200.0 bps.
Net Profit reported at Rs 53.0 cr for period ended Mar 2021 vis-vis sales of Rs -200.0 cr for the period ended Mar 2020, rising 477.4%.
Company reported a poor Net Profit CAGR of -28.2% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 5.0% compared to 7.0% over the last 3 Years. – The stock has given a return of 88% on a 1 Year basis vis-vis a return of -8% over the last 3 Years. – The compounded sales growth on a TTM bassis is -16% vis-vis a compounded sales growth of -3% over the last 3 Years. – The compounded profit growth on a TTM basis is 1334% vis-vis a compounded profit growth of -28% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 6.38% vis-vis 6.04% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 16.42% vis-vis 17.4% for Dec 2020
Conclusion
– has reduced debt. – Stock is trading at 2.68 times its book value
-The company has delivered a poor sales growth of -0.56% over past five years.
– has a low return on equity of 6.62% for last 3 years.
-Dividend payout has been low at 11.61% of profits over last 3 years
-Promoter holding has decreased over last 3 years: -7.32%
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 116.66 and is trading at 128.0, thus bullish price action wise.
