Investing in Minda Corporation Shares: A Comprehensive Guide
Are you considering investing in Minda Corporation Limited?
About Minda Corporation Limited
Minda Corporation Limited is one of the largest suppliers of Electronic Mechanical Security Systems to 2-wheelers, 3-wheelers, and off-road vehicles. The company offers a diversified product portfolio, including Electronic Security Systems, Electronic Controllers for Electric Vehicles, and Lock Sets with various types of keys.
Minda Corporation Limited is known for its innovative products, such as patented Magnetic Shutters for 2-wheeler applications and unique security solutions designed to enhance vehicle security. These include Immobilizers, Answerback/Vehicle Locator Detection Units, and Hands-free security systems. The company also holds patents for the immobilizer application for vehicles operating with drained or no battery conditions.
Financial Performance
Minda Corporation Limited has demonstrated a steady growth in sales and profits over the past financial years. Here is a summary of their financial performance:
Financial Year Ending 31 Mar 2015
Sales Growth: 23.64% Profit Increased: 12.84% Margin Declined: -0.43% Borrowings Reduced: -9.14%Financial Year Ending 31 Mar 2016
Sales Growth: 24.10% Profit Increased: 19.81% Margin Declined: -0.16% Borrowings Increased: 8.21% Share Price Increased: 29.16%Financial Year Ending 31 Mar 2017
Sales Growth: 21.12% Profit Reduced: -10.43% Margin Declined: -1.14% Borrowings Increased: 16.87% Share Price Decreased: -3.45%Future Projections
For the financial year ending Mar-2018, it is projected that:
Sales Growth: 19.00% Profit Increased: 70.06% Margin Improved: 1.39% Borrowings Reduced: -2.45% Share Price Increased: 75.57% Estimated Share Price: INR 195.2For the financial year ending Mar-2019, it is forecasted that:
Sales Growth: 16.63% Profit Increased: 27.09% Margin Improved: 0.42% Borrowings Reduced: -11.54% Share Price Increased: 27.09% Estimated Share Price: INR 248.05Financial Ratios
The following financial ratios provide insight into the company's financial health:
Net Income/Sales: 0.03 Net Income/Pre Tax Income: 0.96 Pre Tax Income/EBIT: 0.69 EBIT/Sales: 0.05 Sales/Assets: 1.46 Assets/Equity: 3.21 Return on Equity: 15 Return on Assets: 0.5 Retention-Based Growth Rate: 15 Market Capitalisation: INR 2312 crores Debt: INR 635 crores Non Current Investments: INR 10 crores Enterprise Value: INR 2936 crores Net Profit: INR 96 crores Interest: INR 45 crores Tax Savings on Interest: INR 2 crores Other Income: INR 49 crores Firm Profits: INR 90 crores Sales: INR 2962 crores Total Income: INR 3011 crores Firm Margin: 0.03 Enterprise Value to Total Income: 0.98 (Below 2 is better) Enterprise Value to Total Income to Firm Margin: 32.52 (Below 15 is investments friendly) Price to Earning: 24.06 (Below 18 is investments friendly) Price to Book Value: 3.66 (Below 2 is investments friendly) Debt to Equity: 1.01 (Below 2 is investments friendly) Free Cash Flow to Firm: INR 167 crores Free Cash Flow to Equity: INR 123 crores Price to Earning Growth: -2.31Conclusion
In conclusion, Minda Corporation Limited has shown consistent sales growth and profit increases over the past financial years. Despite fluctuations in margins and borrowings, the company has demonstrated a resilient financial performance. With future projections indicating further growth and improvements in margins, investing in Minda Corporation shares may be a promising opportunity.