Target Price: ₹650
Current Market Price: ₹541.65
Minda Corp has significantly enhanced its component price value (CPV) from FY21 to FY25 through strategic acquisitions and deeper penetration into various markets. The transition from traditional mechanical locksets, priced between ₹400 and ₹1,000 per unit, to advanced smart keys and keyless entry systems, costing between ₹1,500 and ₹4,000 per unit, has realized a CPV increase of 2.5 to 4.0 times. Furthermore, upgrades from analogue to TFT clusters have resulted in an additional 2.5 to 5 times uplift in value, while electric vehicle (EV) wiring harnesses provide nearly three times the content value of standard internal combustion engine (ICE) harnesses. Collectively, these strategies have repositioned the company from a supplier focused on two-wheelers to a diversified provider of system solutions.
The company has reported strong financial performance in the first nine months of FY26, driven by its strategic acquisitions and favorable shifts in product mix. Key subsidiaries and associates are now operating with margins between 14% and 20%, a significant improvement from the group’s historical margin of approximately 11%, indicative of a structurally enhancing profitability profile.
Minda Corp has outlined a capital expenditure (capex) plan of ₹2,000 crore over the next four to five years. This investment will focus on establishing new die-casting plants in Pune and Greater Noida, as well as developing facilities for TFT instrument clusters and ramping up joint ventures.
The company achieved a consolidated revenue, EBITDA, and PAT compound annual growth rate (CAGR) of approximately 21%, 28%, and 48% respectively from FY21 to FY25, primarily driven by premiumization-led content upgrades.
We are initiating a “Buy” rating with a discounted cash flow (DCF)-based 12-month target price of ₹650 per share, which reflects an implied price-to-earnings (P/E) ratio of 29 times on FY28 estimated earnings per share. We project a revenue, EBITDA, and PAT CAGR of approximately 17%, 18%, and 29% respectively over the period of FY26 to FY29.
Published on April 22, 2026
