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Multi Baggers

Sushil Finance

5.30 AM Jan 1st 1970

UNO Minda

BSE ID : 532539     NSE ID : UNOMINDA

RECOMMENDED PRICE 591.50

PEAK FROM RECO 660.30 11.63%

CURRENT PRICE 632.60 Resource id #17

Going forward, we continue to remain bullish on the business and expect Minda Industries to report robust topline and bottom-line growth. We recommend to BUY the stock at CMP of Rs 591.50 with an increase target price of Rs 860.

Minda Industries

Minda Industries Ltd. (MIL) released its Q3 FY15 performance on Saturday, February 14, 2015. Following are the highlights and key takeaways from the conference call.

Q3 FY15 Result Highlights

On standalone basis, the company's turnover grew 27.9% YoY to Rs 3,623.2 mn. The EBITDA grew from Rs 176.4 mn in Q3 FY14 to Rs 312.4 mn in Q3 FY15 as EBITDA margin expanded almost 239 bps to 8.6%. The robust performance was further carried down to bottom?level as the company registered a profit after tax of `126.3 mn with a net margin of 3.5% and earnings per share of R 8.0.

On consolidated basis, the turnover remained flat at Rs 4,800.0 mn in Q3 FY15. Nevertheless, the EBITDA doubled from Rs 280.0 mn in Q3 FY14 and to `600.0 mn in Q3 FY15. The profit before tax stood at approx. Rs 170 mn with a PBT margin of nearly 3.5%, during the quarter.

Outlook and Valuations:

As we mentioned earlier, the current fiscal is being proven as a year of turnaround for the company. The expansions made by the company over the last few years are now stepping towards optimum utilizations to turn break-even. The improving industry demand is taking the overall utilizations of the consolidated entity higher. The introduction of new products and improving capacity utilizations have helped in the expansion of profit margins. Going forward, we continue to remain bullish on the business and expect the company to report robust topline and bottom-line growth. In-line with the recent quarterly performances, we have revised our revenue and profit estimates and target multiple upwards. We upgrade MIL from HOLD to BUY with the increase target price of Rs 860 (17.5x of FY16 EPS of Rs 49.2); the stock is currently trading at 12.x of its FY16 earnings.

For full details, Click on the attachment.

 

Holding Disclosure

Analyst Stock Ownership - Yes
Stock traded in Last 30 days (No trading or investment activities done) -  No
Stock Recommended to Clients - Yes
Remuneration/Benefits received from company in 12 months - No
Merchant Banking Market Making activities / projects - No
Sushil Financial Services Pvt. Ltd and Group Companies Holding - Yes
Sushil Financial Services Pvt. Ltd and Group Directors Holding - Yes
Broking Relationship with the company covered - No

Disclaimer: Sushil Financial Services Private Limited and its connected companies, and their respective directors, Officers and employees (to be collectively known as SFSPL), may, from time to time, have a long or short position in the securities mentioned and may sell or buy such securities. SFSPL may act upon or make use of information contained herein prior to the publication thereof. This sheet is for private circulation only and the said document does not constitute an offer to buy or sell any securities mentioned herein. While utmost care has been taken in preparing the above, We claim no responsibility for its accuracy. We shall not be liable for any direct or indirect losses arising from the use thereof and the investors are requested to use the information contained herein at their own risk.

MindaInds_SushilFinance_Multibagger.pdf.pdf

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