We hereby present you our investment idea for Equity Investment i.e “Pick of the Week”. A thorough analysis of company, industry and economy goes behind our stock ideas for you. With the “Pick of the Week”, you may earn superior returns in stock market over a time horizon of 6 – 9 months.

INVESTING RATIONALE

• Strong performance in Q3FY18: Minda Corp. posted a revenue growth of 25.2% YoY in Q3FY18 and 21.2% YoY in 9MFY18. The company posted EBITDA margins of 11.3% in Q3FY18 vs. 9.7% in Q2FY18 due to change in product mix; tooling has increased and there has been shift to more profitable products in Safety, Security and restraint systems and Interior systems.

• Robust order book: The order book for Minda Corp. for 9MFY18 remains healthy at a lifetime value of Rs. 2850 Cr across domestic business as well as exports. This is executable over the next 4-5 years.

• Commencement of SMIT and third die casting plant in Q3FY18: This plant is intended to meet the rising demand of aluminium gravity die casting and low pressure die casting with machining for two and four wheelers for Indian as well as global automotive customers.

• Getting future ready: Minda Corp. with its major focus on R&D and innovation is well placed to capitalize on the upcoming opportunities and disruptions in the automobile industry like safety norms becoming mandatory, BS VI emission norms and Electric vehicles.

• We maintain a BUY with a target of Rs.199.