Synopsis: Auto ancillary firm with a market cap of Rs. 14,179 cr, targets Rs. 17,500 cr revenue by 2030 (~22% CAGR), driven by Rs. 4,000–4,500 cr from acquisitions, expanding exports to Rs. 1,500 cr, EV components, and new product lines across CVs and PVs.
The shares of this company, which is one of the leading automotive component manufacturing companies in India with a pan-India presence and international footprint are in the spotlight after it eyes a revenue target of Rs. 17,500 crore by the year 2030.
With a market capitalisation of Rs. 14,179 cr, the shares of Minda Corporation Ltd closed at Rs. 593.10 per share, increasing 1.1% from its previous close of Rs. 586.65 per share. The stock has delivered a 11% return over the past year, is up 1.5% year-to-date, gained 29% in the last six months, and rose 2% in the past month.
Guidance
Minda Corporation Ltd has set goals to achieve a revenue target of Rs. 17,500 crore by the year 2030. Achieving this target will require an aggressive revenue growth plan of ~22% CAGR over that period which includes a large number of strategic acquisitions that will add approximately Rs. 4,000-4,500 crore to top-line revenue. Ajay Agarwal, Group CFO, Minda Corporation has indicated that he believes the combination of organic growth through both product lines and acquisitions will allow the company to reach this target.
Stable Domestic Demand Across Vehicle Segments
The company’s main source of revenue is currently through steady demand across all major vehicle profiles from Commercial Vehicles (CV), Passenger Vehicles (PV) and 2- and 3-Wheelers. Additionally, the positive developments during the last year in terms of government policy changes and positive OEM commentary have provided a solid foundation for the continued growth of demand for Commercial Vehicles.
The company’s management team has specifically mentioned that since GST was introduced in September of last year, demand growth throughout all three of the primary vehicle/motorcycle segments has accelerated and continues to grow at an increased pace, thereby leading to a continuation of consistently strong performance throughout each of the company’s business segments.
Export as a Long-Term Growth Driver
The Minda Group plans to grow its exports business, which presently accounts for approximately 8-10 percent of total revenue, to be a long-term driver of growth. By the year 2030, the company’s export revenues are projected to be Rs. 1,500 crore or 12-13 percent of topline revenue.
The Company also believes that the favourable trade agreements by the US, EU, and UK, combined with government policy support, will assist in driving long-term export growth, which typically delivers higher margins than domestic markets.
Electric Vehicle and New Product Line Driving Growth
It expects to see significant growth through new product lines and electric vehicle (EV) components, including wiring harnesses, high-voltage wiring, instrument clusters, sunroofs, and tailgates.
The projected kit value for electric two-wheelers will be approximately Rs. 45,000-50,000. This increase in value is driven by both increased technology adoption and the premiumization trend of EV components. This focus on EVs and new advanced products is intended to capture emerging opportunities in the rapidly evolving automotive ecosystem, resulting in increased sales.
Acquisition-based Revenue Contribution
Strategic acquisitions are a key component of Minda’s growth strategy. The recently completed acquisition of Flash Electronics is expected to contribute approximately Rs. 3,800 – Rs. 4,000 crore by 2030, contributing to revenue and product diversification.
Passenger Vehicles are expected to provide ~25% of total revenue. However, growth is still attributable to additions of New Products and Commercial Vehicles. The company is able to generate substantial revenue growth through a combination of organic growth, acquisitions, exports, and technological advancements.
Minda Corporation Ltd is a global manufacturer and exporter of automobile components. It offers a wide range of products including mechatronic systems (ignition switches, smart keys, sensors, starters, alternators), information and connected systems (wiring harnesses, digital clusters, connectors), plastic and interior components (dashboards, consoles, battery trays) and etc.
Its sales rose 25% YoY to Rs. 1,560 Cr in Q3FY26 from Rs. 1,253 cr in Q3FY25. EBITDA grew 28% to Rs. 184 cr from Rs. 144 cr, while net profit jumped 30% to Rs. 84.3 cr from Rs. 64.8 cr, driving a 32% increase in EPS to Rs. 3.58 from Rs. 2.71.
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