Multibagger small cap auto ancillary stock Minda Corp reported 1000% rise in net profit year on year
Minda Corp Q1FY23 June 2022 quarterly results
Minda Corporation Ltd. One of the leading auto ancillary manufacturers of India has reported 1076% rise in net profit year on year basis in its June 2022 quarter ending quarterly financial results. Its revenue has increased 81% and NPBT increased 1100% Year on Year.
Although the sales are flat or increased 7% compared to previous quarter ending March 2022. The Net Profit is down 30% quarter on quarter. The massive rise in year on year results are basically lower base in June 2021 quarter. But if we look at its previous quarter revenues, it is in a steadily growing manner although the profits are not consistent. This is mainly due to adverse macro economic factors which have affected the profitability and margins of most of the companies in the last years.
Table of Contents
- Minda Corp Q1FY23 June 2022 quarterly results
- About Minda Corp
- Difference between Minda Industries & Minda Corp
- Minda Corp Shareholding pattern
- Minda Corp share price & Chart pattern
About Minda Corp
Minda Corporation Ltd is one of the leading auto components manufacturers of India with the well known brand name as Spark Minda. It has diversified product portfolio for 2 wheelers, four wheelers, passenger vehicles, commercial vehicles and electrical vehicles also. Including India it also has global customer base like in Indonesia, Vietnam, Uzbekistan, U.S.A. and Japan.
Difference between Minda Industries & Minda Corp
Minda Corporation was a part of the erstwhile Minda Group which after split between the businesses of the Minda brothers in 2012 now known as two separate companies that is Minda Industries Ltd and Minda Corporation Ltd. Both the companies are listed in the stock market. Presently, Nirmal K Minda owns and operates Minda Industries Ltd and Ashok Minda is the owner of Minda Corporation Ltd. Minda Industries is also a auto components maker with the brand name of UNO MINDA and also is a well known Midcap stock and one of the favorite stocks of retail investors for its multi bagger returns. Presently it has changed its name as UNOMINDA.
Minda Corp Shareholding pattern
Promoters of Minda Corp has a major shareholding of 64.7% in the company and FII & DIIs have respectively 3.69% and 13.96%. FIIs have reduced their stake in last few quarters but simultaneously DIIs are increasing their stakes. Public and retailers currently have nearly 16% shareholding in the stock.
Minda Corp share price & Chart pattern
Minda Corp is a small cap stock with a market capitalization of nearly 5700 Cr. Currently the stock is running at the PE of 30 which is much lower than the sector PE of 135. The stock price is at 243, which is nearly 12% lower than its 52 week high of 287. The RSI is at 64 and the MACD is above the base line.
[The chart we have presented here is on Zerodha web platform. We personally use Zerodha & Upstox for investing and trading in Indian stock market.]
The stock is showing trend reversal from its low of 163 in the June 2022 during the bearish market trend. As per technical analysis of the candle stick chart of Minda Corp, the stock is forming a Cup & Handle chart pattern and may show a good up move in near term.
Minda corp has given a massive 83% return in the last one year instead of the bearish market. Although the auto sector was in a down trend from 2018 due to various regulatory changes but it has given 135% return in last 5 years. And now where most of the auto stocks are reviving due to evolve of EV theme and due to various support from the PLI schemes, this small cap auto stock can give a handsome returns in a midterm.
But all these views are based on our personal analysis and may not be suitable for you, hence you should make your own analysis or consult your financial advisor before making any investing decisions.
