Minda Corporation Limited

Consumer Cyclical — Auto Parts · NSE

₹652.50+₹13.55 (+2.12%)

DalalBaazaar Score

55 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by short-term liabilities exceed short-term assets, small-cap size, which brings sharper price swings.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Short-term liquidity is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of Minda Corporation Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Minda Corporation Limited manufactures and sells automobile components and parts in India, rest of Asia, America, Europe, and Africa.

IndustryAuto Parts

SectorConsumer Cyclical

Employees3,405

Annual revenue₹6,066 Cr

How does it make money?

Turns over ₹6,066 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation. Each of its 3,405 employees supports ₹1.78 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin12.0%

Net margin5.9%

Revenue / employee₹1.78 Cr

Who are its competitors?

The closest listed comparisons in its industry are BOSCH LIMITED, MARUTI SUZUKI INDIA LTD., TVS MOTOR COMPANY LTD, EICHER MOTORS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

BOSCH LIMITEDP/E 56.9x · ROE 15.9%

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

TVS MOTOR COMPANY LTDP/E 56.8x · ROE 35.8%

EICHER MOTORS LTDP/E 34.7x · ROE 23.0%

What is its competitive advantage?Little sign of one

Returns on capital of 14.9% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE14.9%

ROE13.6%

Peer median ROE23.0%

What is the outlook?

8 analysts covering the stock expect revenue to grow about 14.1% and earnings to grow about 29.6% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+14.1%

Est. earnings growth+29.6%

Analysts8

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +43% while net margin moved -12% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+43%

Margin effect-12%

DalalBaazaar Score

55/ 100

Moderate

Weighted across six categories. Every point is explained below.

• ROCE of 14.9% is adequate but not distinctive
• ROCE has been broadly stable
✗ EBITDA margin of 12.0% is thin — little cushion if costs rise
✗ Net margin of 7.5% is slim
• Revenue has compounded at 12.8% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

54/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

60/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

31.1x

3Y Median

51.3x

40 monthly readings · mean 47.4x · range 27.4x–65.6x

Sector Median

45.7x

median of 4 sector peers

🟢Current valuation is approximately 39% below its 3y median of 51.3x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 32% below the peer median of 45.7x.

vs. its own history

Cheap

51.3x median over 40 months · -39%

vs. sector peers

Cheap

45.7x median of 4 peers · -32%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

31.1x

P/B

5.82x

EV/EBITDA

23.1x

PEG

3.80

Dividend Yield

0.25%

What's Good / What's Bad

🟢 What's Going Well3

Cash generation is improving
Free cash flow is up 106% over 3 years.
Valuation below its historical average
At 31.1x the stock trades 39% below its own median of 51.3x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention4

Debt is rising
Total debt is up 106% over 3 years — worth checking what it funded.
Return on equity is falling
ROE has dropped from 17.9% to 13.6% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 17.2% to 14.9% — often a sign of competition or overexpansion.
Short-term liquidity is tight
Current ratio of 0.94 — near-term obligations exceed near-term assets.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 106% over 3 years, from ₹713 Cr to ₹1,472 Cr.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 6.2x to 4.3x.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.94 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 39% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 32% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Returns on shareholder capital are falling
ROE has dropped from 17.9% to 13.6%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 10% a year✓ 12.8% CAGR
Latest reported year was 33.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 10%✓ 12.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✓ ₹281 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 12%✓ 14.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✗ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 5 neutral · 1 weak

Market Cap

₹15,357 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

31.1x

Fair

Fairly valued against the generic band

P/B Ratio

5.82x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹20.95

Profitable

Profitable on a per-share basis

ROE

13.6%

Moderate

Moderate capital efficiency

ROCE

14.9%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.55x

Low

Conservative leverage

Revenue Growth (YoY)

33.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

215.8%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.25%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹281 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹652.5

P/E (Forward)

28.1x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

7.7%

Average

Average margins

Net Margin

7.5%

Average

Average bottom-line conversion

Current Ratio

0.94

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.48

Defensive

Steadier than the market

52W Range Position

61%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

663.8 / 692.7

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

40.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹4,228 Cr	₹4,580 Cr	₹4,965 Cr	₹6,066 Cr	+12.8%
EBITDA	₹474 Cr	₹543 Cr	₹581 Cr	₹725 Cr	+15.2%
EBITDA Margin	11.2%	11.9%	11.7%	12.0%	—
PAT (Net Profit)	₹285 Cr	₹227 Cr	₹255 Cr	₹360 Cr	+8.2%
EPS	₹11.89	₹9.49	₹10.68	₹15.07	+8.2%
ROE	17.9%	11.5%	11.6%	13.6%	—
ROCE	17.2%	15.5%	13.7%	14.9%	—
Total Debt	₹713 Cr	₹535 Cr	₹1,610 Cr	₹1,472 Cr	+27.3%
Free Cash Flow	₹137 Cr	₹35 Cr	₹194 Cr	₹281 Cr	+27.2%

🟢 Revenue has grown at 12.8% a year over 3 years.

🟢 EBITDA has grown at 15.2% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 12.0% over 3 years.

🟢 PAT (Net Profit) has grown at 8.2% a year over 3 years.

🟢 EPS has grown at 8.2% a year over 3 years.

🔴 ROE has fallen from 17.9% to 13.6% over 3 years (-4.3 pts).

🔴 ROCE has fallen from 17.2% to 14.9% over 3 years (-2.3 pts).

🔴 Total Debt has grown at 27.3% a year over 3 years.

🟢 Free Cash Flow has grown at 27.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹5,495 Cr

Total Liabilities

₹2,837 Cr

Total Debt

₹1,472 Cr

Cash & Equivalents

₹103 Cr

Operating Cash Flow

₹676 Cr

Capex

-₹394 Cr

Shareholding (proxy)

Institutional Holding

21.7%

Insider Holding

67.5%

Corporate Actions

Dividend Rate

₹1.6

Ex-Dividend Date

14 Aug 2026

Analyst Consensus

Recommendations

8 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹794

+21.7% vs CMP

Target Range

₹675 – ₹860

Peer Comparison

Company	P/E	ROE
BOSCH LIMITED	56.9x	15.9%
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TVS MOTOR COMPANY LTD	56.8x	35.8%
EICHER MOTORS LTD	34.7x	23.0%

Recent News

2 positive4 mixed

Minda Corporation Share Price Fall: Price and Valuation

Univest, 01 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

MINDACORP Forecast — Price Target — Prediction for 2027

TradingView, 26 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Minda Corp hits record high ₹769 after Q1 profit surge; VAST, orders in focus

Fortune India, 14 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Analysts Are Betting On Minda Corporation Limited (NSE:MINDACORP) With A Big Upgrade This Week

Simply Wall Street, 24 MayAnalyst view

🟢Potentially positiveAn analyst opinion changing, which moves the price without changing the business.

Minda Corp. Yearly Results, Financial summary, Minda Corp. Yearly Earnings

The Economic Times, 05 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Minda Corp Q1FY27 revenue hits record ₹1,846 crore; EV share rises to 10%

scanx.trade, 07 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟡Business QualityAdequate9/20

🟡Financial HealthAdequate10.9/20

🟢GrowthStrong13.4/20

🟡ProfitabilityModerate7.1/15

🟡ValuationFair7.9/15

🟢RiskLow6.7/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 10% a year12.8% CAGR
✓EBITDA margin holds above 10%12.0%
✗Debt / EBITDA stays below 2x2.0x
✓Free cash flow remains positive₹281 Cr
✓ROCE stays above 12%14.9%