Buy Minda Corp.Ltd for the Target Rs.700 by Choice Institutional Equities
Strong execution led by premiumisation and electronics mix improvement: MDA reported a strong Q4FY26 performance with revenue growing 29% YoY, while EBITDA increased 33% YoY. PAT witnessed a sharp 134% YoY growth, supported by improved operating performance, better product mix and higher associate contribution, particularly from Flash Electronics. Growth was driven by premiumisation, rising electronics content and increasing EV-related product contribution.
Premiumisation and EV transition continue to accelerate growth: MDA continues to benefit from rising CPV, as OEMs increasingly shift towards TFT clusters, smart access systems, high-voltage wiring harnesses and advanced electronic architectures. The management highlighted that 12–13% of FY26 growth was driven purely by premiumisation and new product addition. Flash Electronics reported Q4FY26 revenue of ~INR 4,930 Mn with EBITDA margin of ~18.1%, significantly higher than MDA’s historical margin profile, supported by a strong traction across EV motors, controllers, chargers and power electronics.
New product verticals and strong order momentum enhance visibility: MDA’s lifetime order book crossed INR 100 Bn, providing strong long-term revenue visibility across premium and technology-driven categories. Key FY26 wins included the company’s first-ever sunroof order worth ~INR 3.5 Bn through its JV with HCMF Taiwan and a switch order exceeding INR 10 Bn lifetime value. The company also secured multiple wins across TFT clusters, smart electronic systems and high-voltage wiring harnesses. We believe MDA’s strong positioning across premiumisation, EV electronics and rising CPV opportunities will drive medium term growth.
View and Valuation: We revise our FY27/FY28E EPS estimate upwards by 10.4/10.7%, respectively, driven by a positive outlook, strong traction in premium electronic products, robust order inflow and accelerating contribution from Flash Electronics. We maintain our ‘BUY’ rating with an increased DCF-based target price of INR 700 (earlier: INR 650), implying 28x P/E FY28E EPS, supported by improving growth visibility and expanding presence across high-value automotive electronics and EV ecosystems.
Q4FY26: On all fronts, the result is better than our estimate
* Revenue was up 29.0% YoY and up 9.2% QoQ to INR 17,038 Mn (vs CIE est. at INR 15,924 Mn)
* EBITDA was up 33.0% YoY and up 10.8% QoQ to INR 2,034 Mn (vs CIE est. at INR 1,779 Mn). EBITDA margin was up 37 bps YoY and up 17 bps QoQ to 11.9% (vs CIE est. at 11.2%)
* APAT was up 134.3% YoY and up 35.8% QoQ to INR 1,219 Mn (vs CIE est. at INR 841 Mn)
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SEBI Registration no.: INZ 000160131
