Minda Corporation- An Auto Ancillary Catering to EV OEM's⁹

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 :
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


Stable Q3 Results

Dividend declared

Earnings Presentation

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Q2-FY23 - Superb Results

Investor Presentation - Q2


Minda Corp sets itself up for the next big acquisition to work towards its goal of being a one stop shop for EV components

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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?

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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

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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.

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