Independent Research Analyst

Mamta Verma

DC India Research

DC India Research LLP (DCIR) is based out of Mumbai, India.

We specialize in providing customized, independent research across listed and unlisted companies in India across equities and credit including sectoral research. Our customers include India focussed PE funds, special situation funds, domestic AMCs, Wealth Advisory& PMS firms, Rating Agencies & Investment Advisors. 

The DCIR board consists of prominent names from the industry as well as CIO’s of Hedge funds.

Equity Bottom-Up

Minda Corp: Cusp of New Growth Cycle; Diversified Revenue &amp; Customer Base with Strong Biz. Traction led by new product addition, new customer additions &amp; robust export order book; Margin Levers intact led by Furukawa Turnaround on course + Employee Cost Rationalisation + Operational scale up; Healthy balance sheet &amp; Improving RoCE to support steady multiple re-rating <ul><li>Performance Summary</li></ul><table class="table table-striped">
<thead><tr>
<td>Minda Corp -  Consol. (Rs. Mn.)</td>
<td>Q4FY17</td>
<td>Q3FY18</td>
<td>Q4FY18</td>
<td>FY17</td>
<td>FY18</td>
</tr></thead>
<tbody>
<tr>
<td>Net Sales</td>
<td>5,150</td>
<td>6,362</td>
<td>7,205</td>
<td>20,598</td>
<td>25,934</td>
</tr>
<tr>
<td>YoY (%)</td>
<td>-20.1%</td>
<td>25.2%</td>
</tr>
</tbody>
</table>…

Minda Corp: Cusp of New Growth Cycle; Diversified Revenue &amp; Customer Base with Strong Biz. Traction led by new product addition, new customer additions &amp; robust export order book; Margin Levers intact led by Furukawa Turnaround on course + Employee Cost Rationalisation + Operational scale up; Healthy balance sheet &amp; Improving RoCE to support steady multiple re-rating Performance Summary

Minda Corp -  Consol. (Rs. Mn.)
Q4FY17
Q3FY18
Q4FY18
FY17
FY18



Net Sales
5,150
6,362
7,205
20,598
25,934


YoY (%)
-20.1%
25.2%


…

Minda Corp - In-Line - Re-Iterate Buy Investment Thesis

Equity Analyst, LightStream Research

Chacko Jacob

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Capital Markets

Sandhar Technologies Ltd / Equity Capital Markets

Sandhar Technologies is a component supplier to the automobile industry in India, specializing in safety and security systems.  The company manufactures 21 categories of products and is the leader in the two-wheeler locking system market and the commercial vehicle rearview mirror market in India. The company caters to the needs of nearly 80 OEMs in India and globally. The company received approval for its IPO and the details of the same are shown below:<ul class=""><li>Issue: Sandhar Technologies Ltd</li><li>Total Offer Size: 15,436,145; INR 5.05 - 5.12b</li><li>Price Band: INR 327 - 332</li><li>The 15,436,145, includes an offer for sale of 6.4m equity shares from GTI Capital, one of the two PE investors in the firm</li><li>Issue open/close: 19th March/21st March 2018</li><li>Post-issue, promoter's share will fall to 70% from 80.1% as a result of dilution</li><li>ICICI Securities and Axis Capital have been assigned to manage the offering</li><li>Majority of the proceeds will be used for repayment of loans will the rest will be used for general corporate purposes.</li></ul>On the valuation side, we expect strong topline growth and flat finance expense to drive down FY2018E PE to 23x which is lower than the peer average and median. Based on this we think there is likely to be significant upside post-issue.

Sandhar Technologies is a component supplier to the automobile industry in India, specializing in safety and security systems.  The company manufactures 21 categories of products and is the leader in the two-wheeler locking system market and the commercial vehicle rearview mirror market in India. The company caters to the needs of nearly 80 OEMs in India and globally. The company received approval for its IPO and the details of the same are shown below:Issue: Sandhar Technologies LtdTotal Offer Size: 15,436,145; INR 5.05 - 5.12bPrice Band: INR 327 - 332The 15,436,145, includes an offer for sale of 6.4m equity shares from GTI Capital, one of the two PE investors in the firmIssue open/close: 19th March/21st March 2018Post-issue, promoter's share will fall to 70% from 80.1% as a result of dilutionICICI Securities and Axis Capital have been assigned to manage the offeringMajority of the proceeds will be used for repayment of loans will the rest will be used for general corporate purposes.On the valuation side, we expect strong topline growth and flat finance expense to drive down FY2018E PE to 23x which is lower than the peer average and median. Based on this we think there is likely to be significant upside post-issue.

Sandhar Technologies IPO: Make Hay While the Sun Shines

Q3-FY18 &amp; 9M-FY18 Performance Summary<table class="table table-striped"><tbody>
<tr>
<td>
Minda Corp
Consolidated (Rs. Mn.)
</td>
<td>Q3FY17</td>
<td>Q4FY17</td>
<td>Q1FY18</td>
<td>Q2FY18</td>
<td>Q3FY18</td>
<td>9MFY 17</td>
<td>9MFY 18</td>
</tr>
<tr>
<td> Net Sales </td>
<td>    5,083 </td>
<td>    7,614 </td>
<td>    5,817 </td>
<td>    6,550 </td>
<td>    6,362 </td>
<td>   15,447 </td>
<td>   18,729 </td>
</tr>
<tr>
<td>YoY (%)</td>
<td>-22.6%</td>
<td>18.1%</td>
<td>19.0%</td>
<td>19.6%</td>
<td>25.2%</td>
<td>-14.2%</td>
<td>21.2%</td>
</tr>
<tr>
<td>QoQ (%)</td>
<td>-7.2%</td>
<td>49.8%</td>
<td>-23.6%</td>
<td>12.6%</td>
<td>-2.9%</td>
<td> </td>
<td> </td>
</tr>
<tr>
<td> Raw Material</td>
<td>    2,938</td>
<td>    4,999</td>
<td>    3,561</td>
<td>    3,941</td>
<td>    3,727</td>
<td>     9,104</td>
<td>   11,229</td>
</tr>
<tr>
<td>as % of net sales</td>
<td>57.8%</td>
<td>65.7%</td>
<td>61.2%</td>
<td>60.2%</td>
<td>58.6%</td>
<td>58.9%</td>
<td>60.0%</td>
</tr>
<tr>
<td>YoY (%)</td>
<td>-26.0%</td>
<td>27.9%</td>
<td>24.5%</td>
<td>19.2%</td>
<td>26.9%</td>
<td>-17.8%</td>
<td>23.3%</td>
</tr>
<tr>
<td>QoQ (%)</td>
<td>-11.1%</td>
<td>70.2%</td>
<td>-28.8%</td>
<td>10.7%</td>
<td>-5.4%</td>
<td> </td>
<td> </td>
</tr>
<tr>
<td> Employee Expenses</td>
</tr>
</tbody></table>…

Q3-FY18 &amp; 9M-FY18 Performance Summary


Minda Corp
Consolidated (Rs. Mn.)

Q3FY17
Q4FY17
Q1FY18
Q2FY18
Q3FY18
9MFY 17
9MFY 18


 Net Sales 
    5,083 
    7,614 
    5,817 
    6,550 
    6,362 
   15,447 
   18,729 


YoY (%)
-22.6%
18.1%
19.0%
19.6%
25.2%
-14.2%
21.2%


QoQ (%)
-7.2%
49.8%
-23.6%
12.6%
-2.9%
 
 


 Raw Material
    2,938
    4,999
    3,561
    3,941
    3,727
     9,104
   11,229


as % of net sales
57.8%
65.7%
61.2%
60.2%
58.6%
58.9%
60.0%


YoY (%)
-26.0%
27.9%
24.5%
19.2%
26.9%
-17.8%
23.3%


QoQ (%)
-11.1%
70.2%
-28.8%
10.7%
-5.4%
 
 


 Employee Expenses

…

Minda Corp – Strong Q3-FY18 with Div. Rev. Growth, Steady Margin Exp. Re-Iterate Inv. Thesis

Q2-FY18 Results – Topline - Consolidated revenue came in at Rs. 6.55bn, a strong growth of 20% YoY with standalone revenue increasing 21% YoY at Rs. 2.4bn. Ex-standalone revenue jumped 19% YoY at Rs. 4.14bn. Revenue Mix - India contributed ~69% to the total consolidated revenue while SE Asia and Europe contributed ~6% and ~25% respectively to the consolidated revenue. Safety &amp; security systems division continued to be the biggest contributor to the overall business with 45% share in the…

Q2-FY18 Results – Topline - Consolidated revenue came in at Rs. 6.55bn, a strong growth of 20% YoY with standalone revenue increasing 21% YoY at Rs. 2.4bn. Ex-standalone revenue jumped 19% YoY at Rs. 4.14bn. Revenue Mix - India contributed ~69% to the total consolidated revenue while SE Asia and Europe contributed ~6% and ~25% respectively to the consolidated revenue. Safety &amp; security systems division continued to be the biggest contributor to the overall business with 45% share in the…

Minda Corp-Q2FY18 : Strong Beat in EBITDA Margins, Across the Board Performance.

Minda Corp : Cusp of New Growth Cycle; Diversified Revenue &amp; Customer Base with Strong Biz. Traction led by new product addition, new customer additions &amp; robust export order book; Margin Levers intact led by Furukawa Turnaround on course + Employee Cost Rationalisation + Operational scale up; Healthy balance sheet &amp; Improving RoCE to support steady multiple re-rating. <ul><li>Background</li></ul>Minda Corp, flagship company of the Ashok Kumar (AK) Minda Group, founded in 1958 by Late Shr. S.L. Minda, is amongst…

Minda Corp : Cusp of New Growth Cycle; Diversified Revenue &amp; Customer Base with Strong Biz. Traction led by new product addition, new customer additions &amp; robust export order book; Margin Levers intact led by Furukawa Turnaround on course + Employee Cost Rationalisation + Operational scale up; Healthy balance sheet &amp; Improving RoCE to support steady multiple re-rating. BackgroundMinda Corp, flagship company of the Ashok Kumar (AK) Minda Group, founded in 1958 by Late Shr. S.L. Minda, is amongst…

Minda Corp - Cusp of New Growth Cycle; Play on Twin Benefits of Sharp Earnings & Multiple Expansion

India

Minda Corporation Limited was founded in 1985. The Company's line of business includes the manufacturing of electrical equipment and supplies.

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Minda Corp Ltd (MDA IN)

Minda Corp - In-Line - Re-Iterate Buy Investment Thesis

Minda Corp: Cusp of New Growth Cycle; Diversified Revenue & Customer Base with Strong Biz. Traction led by new product addition, new customer...

DC India Research

Sandhar Technologies IPO: Make Hay While the Sun Shines

Sandhar Technologies is a component supplier to the automobile industry in India, specializing in safety and security systems. The company...

Chacko Jacob

Minda Corp – Strong Q3-FY18 with Div. Rev. Growth, Steady Margin Exp. Re-Iterate Inv. Thesis

Q3-FY18 & 9M-FY18 Performance Summary Con-Call Highlights Outlook –Management continues to focus on Exports. Total group exports are expected...

DC India Research

Minda Corp-Q2FY18 : Strong Beat in EBITDA Margins, Across the Board Performance.

Q2-FY18 Results – Topline - Consolidated revenue came in at Rs. 6.55bn, a strong growth of 20% YoY with standalone revenue increasing 21% YoY at...

DC India Research

Minda Corp - Cusp of New Growth Cycle; Play on Twin Benefits of Sharp Earnings & Multiple Expansion

Minda Corp : Cusp of New Growth Cycle; Diversified Revenue & Customer Base with Strong Biz. Traction led by new product addition, new customer...

DC India Research

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