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Minda Industries Ltd. Stock Analysis

Mid Cap
Evaluated by 1794 users | BSE: 532539 | NSE: MINDAIND |
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Minda Industries, incorporated in 1992, is engaged in the business of manufacturing switches and batteries for 2/3 wheelers and off-road vehicles. The company is the flagship company of the Minda Group. it commands more than 70% market share in the 2/3 wheeler segment in India.Presently the...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Minda Industries Ltd. has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 11.71%9.69%7.35%2.89%11.34%15.41%14.22%15.76%12.46%7.74%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 9541,1791,3401,7062,2322,5273,3864,4715,9085,465
Y-o-Y Gr. Rt.-23.6%13.7%27.3%30.8%13.2%34%32%32.2%-7.5%
Adjusted EPS (Rs.) 1.371.150.98-0.012.234.386.7310.7610.776.89
Y-o-Y Gr. Rt.--16.1%-14.8%-101%NA96.4%53.7%59.9%0.1%-36%
Book Value per Share (Rs.) 7.9611.8212.7712.9115.1319.5731.6552.8964.6768.86
Adjusted Net Profit 26.727.523.4-0.353.4105161282284182
Net Op. Cash Flow (Rs. Cr.) 44.677.495.341.6135146335362414965
Debt to Cash Flow from Ops 3.892.362.087.321.722.681.511.692.611.22
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Minda Industries Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 21.4%19.6%17.3%-7.5%
Adjusted EPS 19.7%25.3%0.8%-36%
Book Value per Share 27.135.429.66.5
Share Price 44% 56.9% 6.7% -11.3%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 15.8111.337.87-0.115.7625.0321.0223.0318.3410.32
Operating Profit Margin (%) 8.776.436.974.566.919.4111.0411.9412.4912.02
Net Profit Margin (%) 2.81.951.75-0.132.014.144.766.265.43.69
Debt to Equity 0.870.640.640.980.640.830.670.440.630.65
Working Capital Days 76931039787918298102112
Cash Conversion Cycle 12191516181915192626
Entity Percentage Holding
Promoters 70.88%
Institutions 18.30%
Non-Institutions 10.81%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Minda Industries Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Minda Industries Ltd. is a average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Minda Industries Ltd.'s performance infers:

Minda Industries Ltd. earnings have grown by 25.3%, whereas share price has appreciated 56.9% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Minda Industries Ltd. share prices over the last 10 years. Here is what we found out:

Minda Industries Ltd. share price has appreciated 29.7% annually over the past ten years.

Minda Industries, incorporated in 1992, is engaged in the business of manufacturing switches and batteries for 2/3 wheelers and off-road vehicles.

The company is the flagship company of the Minda Group. it commands more than 70% market share in the 2/3 wheeler segment in India.

Presently the company owns 8 state-of-the-art facilities located in India and Indonesia. The company has workforce of more than 2800 people and a network of over 300 distributors spread across

Minda Industries, incorporated in 1992, is engaged in the business of manufacturing switches and batteries for 2/3 wheelers and off-road vehicles.

The company is the flagship company of the Minda Group. it commands more than 70% market share in the 2/3 wheeler segment in India.

Presently the company owns 8 state-of-the-art facilities located in India and Indonesia. The company has workforce of more than 2800 people and a network of over 300 distributors spread across country.

NK Minda Group (Parent Company)

The NK Minda Group is engaged in manufacturing of a range of automotive components. The group has business interest in areas like Switches, Batteries, Lighting, Horns, Mirrors and Alternate Fuel Kits - LPG / CNG Fuel Kits. NK Minda Group has an annual turnover of Rs.9.3 billion (USD 233 million).

Products

Switches- The company is engaged in manufacturing of switches for 2, 3, 4 wheelers and also for off-road vehicle. Under this, it manufactures electronic systems, modular switch, panel switch, rotary switch, starter switch, plunger switch, rocker switch and many more products.

Batteries- The company has introduced the automotive battery brand “Vroom” in the market. Minda Industries manufactures 3 types of batteries- Long Life, Maintenance Free and Time Proof are available in all the 3 sizes, i.e 2.5 Ah, 5.0 Ah and 9.0 Ah. 

Milestones

 1992- Minda Industries was incorporated. 

1995- The company’s businesses were re-organised into Strategic Business Units (SBUs).

1997- The NK Minda Group implemented TQM - PQCDSM - TPS in the group. The same year company received ISO 9001certification.   

2000 – The company was awarded CII-EXIM BANK Business Excellence Award.

2001- Minda Industries commenced production of 2 and 3 wheeler switches at Pune.  

2002-2003- The company expanded its operation by entering in ASEAN region. Bi-wheeler switch manufacturing units at Delhi were consolidated at Manesar.

The company set-up manufacturing plants for handle bar assembly located at Waluj and Hosur. It received ISO-14001 and OHSAS 18001 certification

2003-2004- The company received TS 16949 certification. The company filed for its first patent. 

2005-2006- The company established a manufacturing plant at Mysore for Handle Bar Assembly. It received achievement award from Honda for quality and delivery. The company set up a plant in Indonesia. It also commissioned its Pantnagar project. The company set up electronics manufacturing plant for switches located at Pune. 

2010 - TAFE has awarded Minda Industries Limited - Lighting Division, Sonepat as a ‘SELF CERTIFIED SUPPLIER’

- Minda Industries Limited - Acoustic Division received ‘ Outstanding Performance Award - 2010’ from Mahindra - Automotive & Farm Equipment Sectors

2011 - Company has signed the Joint Venture Agreement (JVA) with Kyoraku Co. Ltd., Japan and Nagase & Co. Ltd.

2012 - Minda Industries Limited - Switch Division received "TPM Excellence Award" from JIPM, Japan.in 2012
- Minda Industries Limited - Switch Division received "Quality Management Awrad" from Honda
- Minda Industries Limited - Switch Division received "Best Development Award for Lever Combination Switch Development" from JCB India.

2013
- MIL – Acoustic Division received “Gold Quality Award” from Bajaj Auto Ltd.
- MIL – Lighting division received a “Special Citation of Distinction” for a valued partnership at Tata Motors Annual Supplier’s Conference.
- MIL – Lighting Division received “Silver Trophy for Overall Performance” from Maruti Suzuki India Ltd.
- MIL- Switch Division received ‘Quality Achievement Award” from Polaris, USA
- Minda Industries Limited - Switch Division received ""Gold Award for Quality” from India Yamaha Motors Pvt. Ltd.

2014
- MIL – Lamp received Tier – II Up gradation Shield from MSIL."

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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