Broker’s Call: Minda Corp (Buy)

Minda Corp is structurally positioned to outperform the auto ancillary space, riding four powerful tailwinds simultaneously for market share expansion — premiumisation, EV transition, localisation and export scale-up. The shift from analogue to TFT clusters (8x ASP uplift) and increase in high-voltage wiring harnesses are expected to be key triggers for content per vehicle growth.

Beyond electronics, Minda is simultaneously scaling exports, adjacent product categories and order-backed capacities. Despite gradual premiumisation, vehicle access continues to provide stable and margin-accretive growth supported by ASEAN exports.

Flash Electronics and Turntide agreements would not only catapult 2W EV kit value by 3x versus ICE 2W but also mark Minda’s entry into high power motor controllers. With a large order backlog of ₹1,000 crore comprising new products like sunroofs and switches (Toyodenso JV) and existing products (die casting for EV) further diversify the growth algorithm.

We expect Minda to deliver 19 per cent/20 per cent/28 per cent Revenue/EBITDA/PAT CAGR over FY26-28E. Therefore, we value Minda at a premium multiple of 34x FY28E EPS to arrive at a TP of ₹825 and initiate coverage with a Buy rating, reflecting the company’s increasing electronics mix, diversified growth architecture and improving earnings quality. Key risks include slower TFT adoption, weaker underlying industry growth, delays in utilisation ramp-up, slower localisation progress and export execution risks.

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