We all know about Minda Industries as a well recognised EV stock , but few of us know about Minda corporation which is also in to a completely different set of products being supplied to EV.
Sometimes business splits are enablers of new directions as individuals chart their own destinies. In 1995 when the combined Minda Group split, it was divided between the two brothers NK Minda and Ashok Minda as the UNO Minda and Spark Minda Groups respectively.
Set up by their father SL Minda in 1958, the company was first known as Minda Switch Auto in 1986. At the time of the split, the switch, light, horn and batteries division passed on to the elder brother, while the younger sibling Ashok Minda entered the domain of safety security and restraint systems, driver information and Telematics systems and interior systems. These business demarcations ensured the two brothers did not compete with each other and facilitated each other’s independent growth.
Today , Minda corporation is an EV component supplier to all major OEM of EV’s.
The products manufactured by Minda corporation can be found in this link below :
The screener data for Minda corporation is as follows : https://www.screener.in/company/MINDACORP/consolidated/
During quater ending q2, 2022, it reported a Sales of 750 crore with a net profit of 39 crore , a jump.of 51%.
In a recent interview , Asok Minda MD CEO of Minda corporation explains about order book position and how they are geared up to take advantage of the EV Boom.
There is yet another interview yesterday with Aakash Minda , ED of Minda Corporation.
My take after going through the interview both with Ashok Minda & Aakash Minda :
#Minda corporation is a zero debt company and that is how they make several acquisitions.
#Minda corporation supplies to all OEM’s both 2 wheeler and 4 wheeler and the current product range are IC Engines neutral, and so they have just upgraded their product range suitable to EV (what we call as premiumisation)
#They have also made a 100 subsidiary- spark Minda for 100% EV components
#Since the transition to EV is going to be gradual, Among Auto components manufacturers , I would prefer those companies stocks , who would be benefitted from both business - traditional diesel/ petrol engine vehicles and EV.
#According to to Minda corporation , 2 wheeler EV would be faster than 4 wheelers- no wonder companies like Maruti is yet to come out with a concrete EV plan and so they are working closely with all 2 wheeler OEM’s and they are already supplying EV components to all OEM’s
#The fortune of Auto ancillaries depends upon the fortune of the Auto OEM’s. No wonder the Auto components stocks were not doing very well for last 3 years …
Now since last 2 quarters, the OEM business has started doing better, so also the Auto components stocks have started doing well. It would depend upon the pick up of our economy
#One punch line I liked - óbjective is to avoid Chinese dependence
#The product range details can be seen in screener link given in my opening post above.
#Promoters with 65% stake in the company- shows commitment in the business …well known brand with Auto OEM’s since decades.
Discl: I have taken a small position …would like to add further, given the comfortable valuation.
This is not an investment advice .please do your own assessment before investing.n
What are the thoughts on Minda Corp saying ‘It is only a financial investment’? Pricol promoters have 36%+ holding while remaining is with Inst+Retail. If at all Minda Corp goes for the acquisition, how long would it take for the whole process to be completed?
Every buyout starts that way only. mcap of minda is 5000 crores, they invested 400 crores as just investment?
work going on at the back on how to get enough investor on minda’s side before triggering open offer.
If pricol uses all the cash it has to buyback the shares they would be a bit better off
MindaCorp to increase it’s stake in Pricol Ltd. from current 15.70% to 24.5%. This was bound to happen. Minda seems eager to eat up EV ancillary market space.
CRISIL Ratings has reaffirmed its ‘CRISIL AA-/Stable/CRISIL A1+’ ratings on the bank facilities of Minda Corporation Limited (MCL; part of the MCL group).
The rating reflects groups healthy business risk profile driven by its strong market position in the auto component industry, group’s diversified product offerings and its marquee customer base in domestic market. Minda Group is one of the largest player in India in security systems for two-wheelers and a leading player in the wire-harnessing segment for two-wheeler, three-wheeler and commercial vehicles. Group is expected to continue to improve its market position supported by continuous innovation being undertaken for various product segments and its long-standing relationships with marque customers. Driven by healthy demand flow from domestic market and strong tie-up with customers, group has been growing at a rate much higher than industry growth rate (revenue growth was ~44% in FY23 vs 12-13% Industry growth in same fiscal). With continuous technological innovation and introduction of new products to its product profile, which is agnostic to the electric vehicle revolution, the group is expected to continue to diversify its offerings and grow at a healthy pace over the medium term.
