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Multi Baggers

Sushil Finance

5.30 AM Jan 1st 1970

UNO Minda

BSE ID : 532539     NSE ID : UNOMINDA

RECOMMENDED PRICE 881.00

PEAK FROM RECO 660.30 -25.05%

CURRENT PRICE 632.00 Resource id #18

The auto ancillary company continued with its robust performance driven by rise in volumes. Factoring the recent developments, we have arrived at a target price of Rs.1345

Minda Industries

Minda Industries Ltd. (MIL) released its Q3 FY16 performance on Tuesday, February 02, 2016. The board declared an interim dividend of Rs.3 per share. Following are the highlights and key takeaways from the conference call.

Q3 FY16 Result Highlights

On consolidated basis, the turnover grew 13.2% YoY to Rs.6,256.9 mn in Q3 FY16 driven by rise in volumes and increased contribution from new businesses. The EBITDA registered a robust increase of 44.8% to Rs.589.3 mn as the margins expanded from 7.3% in Q3 FY15 to 9.4%. The adjusted net profit jumped from Rs.129.9 mn in Q3 FY15 to Rs.262.2 mn.

During 9M FY16, the revenue grew 16.1% to Rs.18,100.2 mn and the adjusted EPS jumped from Rs.23.9 in 9M FY15 to Rs.41.6 in 9M FY16.

Outlook and Valuations:

The auto ancillary company continued with its robust performance driven by rise in volumes on account of festive season discounts, low fuel costs, fresh launches and reduced interest rates and well supported by contribution from new businesses. For the first time, all the operational subsidiaries have turned around at the PBT level. Going forward, we believe the company is likely to continue with robust growth on account of increasing capacity utilizations, scalability of new businesses and an anticipated uptick in automobile industry.

Furthermore, the pick-up in demand for two?wheelers, which have broadly remained subdued for last few quarters would boost the top-line. On the profitability front, the increasing utilizations, rising contribution from high-margin products and cost-cutting initiatives would further improve margins. During the recent concall, the Management stated that the company would be targeting 20% top-line and 5% net margin in the long run. Factoring the recent developments, we have arrived at a target price of Rs.1345 (18.0x of FY17 EPS of Rs.74.7).

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: This report has been furnished to you for your general information only and should not be reproduced, re‐circulated, published in any media, website or otherwise, in any form or manner, in part or as a whole, without the express consent in writing of Sushil Financial Services Private Limited. This Research Report is meant solely for use by the original recipient to whom it is sent and is not for circulation. Any unauthorized use, disclosure or public dissemination or copying of information (either whole or partial) contained herein is prohibited. This Report does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients. The recommendations, if any, made herein are expression of views and/or opinions and should not be deemed or construed to be neither advice/offer for the purpose of purchase or sale of any securities mentioned herein. Past performance is not a guide for future performance, future returns are not guaranteed. Opinions expressed herein are subject to change without notice. Investor should rely on information/data arising out of their own investigations. Investors are advised to seek independent professional advice and arrive at an informed trading/investment decision before executing any trades or making any investments. The price and value of the investments referred to in this material and the income from them may go down as well as up, and investor may realize losses on any investments. This Report has been prepared on the basis of publicly available information, internally developed data and other sources believed by us to be reliable. Sushil Financial Services Private Limited or its directors, employees, affiliates or representatives do not assume any responsibility for, or warrant the accuracy, completeness, adequacy and reliability of such information / opinions / views. None of the directors, employees, affiliates or representatives of company shall be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary damages/loss etc whatsoever from the information/opinions/views contained in this Report and investors are requested to use the information contained at their risk. We do not undertake to advise you as to any change of our views expressed in this Report. Sushil Financial Services Private Limited (SFSPL) and its connected companies, and their respective Directors, Officers and employees or their relative, may have a long or short position in the subject companies mentioned in the report and it may not be construed as potential conflict of interest with respect to any recommendation and related information and opinions. Reports based on technical and derivative analysis center on studying charts company’s price movement, outstanding positions and trading volume, as opposed to focusing on a company’s fundamentals and, as such, may not match with a report on a company’s fundamental analysis. SFPSL has different business segments/Divisions with independent research separated by Chinese walls catering to different set of customers having various objectives, risk profiles, investment horizon, etc. and therefore may at times have different contrary views on stocks sector and markets. Research Report may differ between SFSPL’s RAs on account of differences in research methodology, personal judgment and difference in time horizons for which recommendations are made. User should keep this risk in mind and not hold ‐ SFSPL, its employees and associates responsible for any losses, damages of any type whatsoever. This Report is not intended to be a complete statement or summary of the securities, market or developments referred to in this document. SFSPL or its affiliates or employees are under no obligation to update the information. SFSPL or its affiliates or employees shall not be in any way responsible and liable for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. SFSPL or its affiliates and/or its employees may have financial interest in the subject companies. SFSPL or its affiliates and/or employees may have beneficial ownership of one per cent or more securities of the subject company, at the end of the month immediately preceding the date of publication of the research report. SFSPL or its associates or its Research Analyst have not received any compensation or other benefits from the subject companies or third party in connection with the research report. SFSPL/its Associates/ Research Analyst/ his Relatives may have any other material conflict of interest at the time of publication of the research report. SFSPL/its Associates/ Research Analyst/ his Relatives have not managed or co‐managed public offering of securities, have not received compensation for investment banking or merchant banking or brokerage services, have not received any compensation for product or services other than investment banking or merchant banking or brokerage services from the subject companies in the last twelve months. There are no material disciplinary action that been taken by any regulatory authority impacting equity research analysis activities. 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.

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