Note - on Minda Corporation, Bajaj Auto and Indigo Paints Ltd - Q2FY26E from Asit C. Mehta Investment Interrmediates Ltd
Result note on Minda Corporation from Asit C. Mehta Investment Interrmediates Ltd.
* Minda Corp reported strong results, with revenue, EBITDA, and PAT surpassing consensus estimates by 4.4%, 6.2%, and 26.7%, respectively.
* Consolidated revenue rose 19% YoY to Rs 15,354 mn, driven by a robust product portfolio and an expanding customer base.
* Mechatronics & Aftermarket grew 11.4% YoY, supported by strong domestic 2W demand despite muted demand in European and ASEAN markets, while Information & Connected Systems grew 26.4% YoY, benefiting from strong demand in wiring harness and instrument cluster businesses.
* Absolute EBITDA increased 21.4% to Rs 1,779 mn, with EBITDA margins improving 22 bps to 11.6%, slightly better than consensus estimates.
* Adjusted PAT rose 13.9% YoY to Rs 846 mn.
The stock is “Not rated” as we have a soft coverage on the company.
Result note on Bajaj Auto from Asit C. Mehta Investment Interrmediates Ltd.
* In Q2FY26, Bajaj Auto saw volume growth of 5.9% YoY/ 16.5% QoQ. Growth was led by exports, while domestic was muted due to decline in 2Ws.
* We expect ASP to inch up by 6.8% YoY/ 2.0% QoQ due to favourable FX movement, resumption of KTM exports and QoQ uptick in share of 3W volumes.
* We expect EBITDA margins to be stable sequentially at 19.8% (-45 bps YoY) as commodity cost headwinds may be offset by cost control. We expect EBITDA of Rs 29,340 mn (+10.6% YoY/+18.2% QoQ)
* We expect Net Profit of Rs 23,576 mn, up by 17.6% YoY/12.5% QoQ.
The stock is currently trading at 27.2/24.5/22.7x FY26/27/28E EPS. We have a BUY rating on the stock with a target price of Rs 9,850 based on SOTP valuation. We will review our price target and rating post the results and conference call.
Result note on Indigo Paints Ltd from Asit C. Mehta Investment Interrmediates Ltd.
* Indigo’s reported numbers for Q2FY26 saw outperformance on Revenue/EBITDA/PAT of 1.1/5.3/3.5%.
* Despite extended monsoons, revenues grew 4.2% YoY, especially in the premium segment, signalling improving demand conditions. Except putty and cement paints, all product categories saw good growth supported by moderate volume growth.
* Gross margins expanded 107 bps YoY due to stable RM prices and improved product mix. EBITDA margins followed suit.
* Lower depreciation was offset by lower other income and PAT grew 10.9% YoY.
We have a price target of Rs 1,395 on shares of INDIGOPN, valuing them at 34x 1 yr fwd P/E on 4 qtr ending EPS of 41 We will review our rating and price target post detailed analysis of the results and conference call.
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