NSEI:MINDACORP

Stock Analysis Report

Executive Summary

Minda Corporation Limited manufactures and sells mechanical and electronic security systems, and electronic controllers for electric vehicles for auto original equipment manufacturers primarily in India.

Snowflake

Fundamentals

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Minda's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.1%

MINDACORP

5.9%

IN Auto Components

3.9%

IN Market


1 Year Return

-29.6%

MINDACORP

-22.7%

IN Auto Components

6.0%

IN Market

Return vs Industry: MINDACORP underperformed the Indian Auto Components industry which returned -22.7% over the past year.

Return vs Market: MINDACORP underperformed the Indian Market which returned 6% over the past year.


Shareholder returns

MINDACORPIndustryMarket
7 Day1.1%5.9%3.9%
30 Day-5.6%7.0%7.8%
90 Day-13.6%0.6%2.5%
1 Year-29.1%-29.6%-21.9%-22.7%8.2%6.0%
3 Year-25.1%-26.3%-10.5%-12.7%23.0%16.7%
5 Year72.6%68.3%28.4%23.6%43.5%30.0%

Price Volatility Vs. Market

How volatile is Minda's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Minda undervalued compared to its fair value and its price relative to the market?

12.3x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: MINDACORP (₹84.2) is trading above our estimate of fair value (₹25.25)

Significantly Undervalued: MINDACORP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MINDACORP is good value based on its PE Ratio (12.3x) compared to the Auto Components industry average (12.9x).

PE vs Market: MINDACORP is good value based on its PE Ratio (12.3x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: MINDACORP is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: MINDACORP is overvalued based on its PB Ratio (1.6x) compared to the IN Auto Components industry average (1.3x).


Next Steps

Future Growth

How is Minda forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

24.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MINDACORP's forecast earnings growth (24% per year) is above the savings rate (7.6%).

Earnings vs Market: MINDACORP's earnings (24% per year) are forecast to grow faster than the Indian market (18.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MINDACORP's revenue (17% per year) is forecast to grow faster than the Indian market (11.3% per year).

High Growth Revenue: MINDACORP's revenue (17% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if MINDACORP's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Minda performed over the past 5 years?

12.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MINDACORP's earnings have grown by 12.3% per year over the past 5 years.

Accelerating Growth: MINDACORP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MINDACORP had negative earnings growth (-2.5%) over the past year, making it difficult to compare to the Auto Components industry average (-4.6%).


Return on Equity

High ROE: MINDACORP's Return on Equity (12.8%) is considered low.


Return on Assets

ROA vs Industry: MINDACORP has a higher Return on Assets than the Auto Components industry average last year.


Return on Capital Employed

ROCE Improving: MINDACORP's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Minda's financial position?


Financial Position Analysis

Short Term Liabilities: MINDACORP's short term assets (₹14.5B) exceeds its short term liabilities (₹10.7B)

Long Term Liabilities: MINDACORP's short term assets (14.5B) exceeds its long term liabilities (1.9B)


Debt to Equity History and Analysis

Debt Level: MINDACORP's debt to equity ratio (43.6%) is considered high

Reducing Debt: MINDACORP's debt to equity ratio has reduced from 132.6% to 43.6% over the past 5 years.

Debt Coverage: MINDACORP's debt is well covered by operating cash flow (40.4%).

Interest Coverage: MINDACORP's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet

Inventory Level: MINDACORP has a high level of physical assets or inventory.

Debt Coverage by Assets: MINDACORP's debt is covered by short term assets (assets are 2.796310x debt).


Next Steps

Dividend

What is Minda's current dividend yield, its reliability and sustainability?

0.83%

Current Dividend Yield


Dividend Yield vs Market

company0.8%marketbottom25%0.6%markettop25%2.4%industryaverage1.0%forecastin3Years1.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: MINDACORP's dividend (0.83%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: MINDACORP's dividend (0.83%) is low compared to the top 25% of dividend payers in the Indian market (2.42%).

Stable Dividend: MINDACORP has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: MINDACORP's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (10.2%), MINDACORP's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Minda's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Ashim Vohra (55yo)

0yrs

Tenure

₹16,283,589

Compensation

Mr. Ashim Vohra is Chief Operating Officer of Minda Corporation Limited. Mr. Vohra serves as Chief Executive Officer and Executive Director of Minda Corporation Limited since October 15, 2019. He served as ...


CEO Compensation Analysis

Compensation vs. Market: Ashim has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Indian market.

Compensation vs Earnings: Ashim's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

3.3yrs

Average Tenure

55yo

Average Age

Experienced Management: MINDACORP's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

3.9yrs

Average Tenure

63yo

Average Age

Experienced Board: MINDACORP's board of directors are considered experienced (3.9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy₹35,419,99303 Sep 19
Whiteline Barter Pvt. Ltd
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Max Price₹101.20
Buy₹1,085,00024 Jun 19
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Role
Member of the Board of Directors
Group CFO & Executive Director
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Max Price₹108.50
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Whiteline Barter Pvt. Ltd
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Buy₹27,150,70505 Mar 19
Whiteline Barter Pvt. Ltd
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Shares184,500
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Buy₹1,452,44505 Mar 19
Naresh Modi
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Shares10,000
Max Price₹145.24
Buy₹60,784,57327 Feb 19
Whiteline Barter Pvt. Ltd
EntityCompany
Shares453,500
Max Price₹134.03
Buy₹1,295,00022 Feb 19
Laxman Ramnarayan
EntityIndividual
Role
Member of the Board of Directors
Group CFO & Executive Director
Shares10,000
Max Price₹129.50

Ownership Breakdown


Management Team

  • Ashok Minda (58yo)

    Chairman & Group CEO

    • Tenure: 12.6yrs
    • Compensation: ₹48.21m
  • Ajay Sancheti (49yo)

    Company Secretary & Compliance Officer

    • Tenure: 24.8yrs
    • Compensation: ₹6.59m
  • Deepak Singhal (60yo)

    Chief Operating Officer of Corporate Plan & Strategy

    • Tenure: 0yrs
  • Narendra Taneja (59yo)

    Head of Corporate Strategy

    • Tenure: 0yrs
  • Ashim Vohra (55yo)

    COO, CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: ₹16.28m
  • Laxman Ramnarayan (52yo)

    Group CFO & Executive Director

    • Tenure: 2.4yrs
  • Sanjay Aneja (55yo)

    Chief Financial Officer

    • Tenure: 6.5yrs
    • Compensation: ₹10.02m
  • Praveen Dhawan (55yo)

    Head of Corporate Marketing

    • Tenure: 0yrs
  • D. Suresh (47yo)

    Group CTO & CEO of Spark Minda Technical Centre

    • Tenure: 0yrs
  • Vivek Mehrotra

    Vertical Head of HR

    • Tenure: 0.2yrs

Board Members

  • Rakesh Chopra (68yo)

    Independent Non-Executive Director

    • Tenure: 9.4yrs
    • Compensation: ₹560.00k
  • Avinash Gandhi (81yo)

    Lead Independent Director

    • Tenure: 0.2yrs
    • Compensation: ₹660.00k
  • Ashok Minda (58yo)

    Chairman & Group CEO

    • Tenure: 12.6yrs
    • Compensation: ₹48.21m
  • Ashok Jha (72yo)

    Independent Non-Executive Director

    • Tenure: 4.9yrs
    • Compensation: ₹580.00k
  • Ashim Vohra (55yo)

    COO, CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: ₹16.28m
  • Laxman Ramnarayan (52yo)

    Group CFO & Executive Director

    • Tenure: 2.4yrs
  • Pratima Ram

    Independent Non-Executive Director

    • Tenure: 2.9yrs
    • Compensation: ₹280.00k

Company Information

Minda Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Minda Corporation Limited
  • Ticker: MINDACORP
  • Exchange: NSEI
  • Founded: 1958
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: ₹19.132b
  • Shares outstanding: 227.22m
  • Website: https://sparkminda.com/mcl

Number of Employees


Location

  • Minda Corporation Limited
  • D-6-11, Sector-59
  • Noida
  • Uttar Pradesh
  • 201301
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MINDACORPNSEI (National Stock Exchange of India)YesEquity SharesININRJan 2012
538962BSE (Mumbai Stock Exchange)YesEquity SharesININRJan 2012

Biography

Minda Corporation Limited manufactures and sells mechanical and electronic security systems, and electronic controllers for electric vehicles for auto original equipment manufacturers primarily in India. T ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 12:57
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.