Minda Inds

A market leader in switches and horns segment, Minda Industries has been seeing some positive action on the bourses lately. And this could be attributed to its JV with Kosei group of Japan for making and supply of alloy wheels for passenger vehicles. In this JV, Kosei will own 30% stake and balance 70% by Minda group. To be located at Haryana, this project’s first phase will come up at a cost of Rs.200 crore and it is scheduled to go on stream by Feb 2016. Capacity is expected to be 60,000 units per month.

The market is betting on this new plant plus the ongoing expansions to benefit the company immensely when the auto sector bounces back. The company has a 61% share in domestic switches market and 47% in horns market. Its top clients include Bajaj Auto, TVS Motor, Honda and Maruti Suzuki.

On the financial front, the company is doing well. For Q3FY15, the company posted a 28% (YoY) rise in revenue at Rs.362 crore and net profit for the quarter surged over 3 times from Rs.4 crore to Rs.12 crore. EBITDA rose 77% at Rs.31 crore while margins improved from 6.2% to 8.6%. Its current fiscal 9M net profit of Rs.51 crore is already more than double its FY14 net profit of Rs.27 crore.