Minda Corp (MINDACORP)

FairStock Score: 59/100 — STEADY

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Promoter holding is strong at 64.84%, aligning management with minority shareholders.
• Financial safety appears reasonable: Altman Z-Score of 3.72, Piotroski F-Score of 8/9, and debt/equity of 0.63.
• Sales growth is robust at 17.23% for the latest period, with a 5-year revenue CAGR of 16.38%.
• Latest quarter revenue of ₹1,560 Cr shows the scale of the business, while net profit of ₹84 Cr still keeps it profitable.

Concerns

• Valuation is extremely rich: P/E of 45.77, P/B of 5.85, EV/EBITDA of 183.73, and PEG of 323.43 leave no margin of safety.
• Profit growth of only 4.96% lags far behind sales growth, indicating margin pressure and weak earnings conversion.
• Free cash flow is deeply negative at -₹865 Cr, raising questions about the quality of reported earnings and capital allocation.
• Dividend yield is negligible at 0.25%, and the Graham Number of ₹157.73 is far below the current price of ₹537.45.

AI Analysis

At ₹537.45, Minda Corp carries a market cap of ₹13,282 Cr. A price-to-earnings of 45.77 against profit growth of just 4.96% gives a PEG of 323.43. That is not an investment; it is an exercise in hope. Graham taught me to buy with a margin of safety. This stock offers the opposite: the Graham Number works out to ₹157.73, less than a third of the current price, leaving a margin of safety of -252%. Even the dividend yield is just 0.25%, so the patient owner is not paid to wait. Revenue growth looks encouraging—17.23% latest and 16.38% five-year CAGR—but profits are not following. The latest quarter's net profit of ₹84 Cr on sales of ₹1,560 Cr suggests very thin margins. Free cash flow is negative at -₹865 Cr: the business is consuming cash even while the market rewards it. The balance sheet is not awful: debt/equity is 0.63, Altman Z-Score is 3.72, and the Piotroski F-Score is a strong 8/9. Promoter holding is healthy at 64.84%. But with ROE of 13.09% and ROCE of 12.66%, this is a decent manufacturing business, not a superior franchise with durable pricing power. In an auto-component cyclical, I cannot pay 5.85 times book for a business whose earnings are barely growing. The stock has already fallen from ₹769 to ₹537, but that does not make it cheap. Minda may be a quality operator, but at this valuation the margin of safety is absent. Price is what you pay, value is what you get—and here, value and price are far apart.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer