Minda Corp rallies 6%, hits new high on securing Rs 750 cr order from OEM

Shares of Minda Corporation hit a new high at Rs 307.75, on rallying 6 per cent on the BSE in Tuesday’s intra-day trade after the company said it secured a significant contract from a leading original equipment manufacturer (OEM) to produce battery chargers for Electric Vehicles (EVs). The lifetime value of the order is Rs 750 crore.

Minda Corporation is one of the leading automotive component manufacturing companies in India and the flagship company of Spark Minda, which was part of the erstwhile Minda Group.

The company has a diversified product portfolio that encompasses Mechatronics; Information and Connected Systems, Plastic and Interiors, Electronic Manufacturing Excellence and Spark Minda Green Mobility for auto OEMs. These products cater to 2/3 wheelers, passenger vehicles, commercial vehicles, off-road vehicles and after-market. The company has a diversified customer base including Indian and global original equipment manufacturers and Tier-1 customers.
 

During the last financial year, electric vehicles accounted for nearly 20 per cent of the total orders win. This project will further solidify Spark Minda’s stewardship towards green and connected mobility and underlines company’s position as forward-looking, future-ready organization, dedicated to revolutionizing the automotive sector through innovation and technological excellence, the management said.

Meanwhile, thus far in the calendar year 2023, the stock price of Minda Corp has zoomed nearly 50 per cent, as compared to 7.6 per cent rise in the S&P BSE Sensex.

Minda Corporation has entered into a Technology Licence Agreement (TLA) with DAESUNG, a prominent automotive electronics company based in Korea, with the aim of bringing the Next Gen Advanced Driver Assistance System (ADAS) solutions to the Indian automotive market. This partnership places Spark Minda ahead of the technology curve by providing localised ADAS solutions for the Indian market through cutting-edge technology offered by Daesung Eltec combined with Spark Minda’s capabilities, the company said.

The company in FY23 annual report said that it remains optimistic about the auto sector’s outlook, primarily due to strong signs demand in the domestic market.

The company expects continuous infrastructure spends, combined with improved fleet utilisation and profitability to drive strong order books for most players. It is expected to introduce a slew of new launches. Additionally, the premiumisation trend in two-wheelers and other segments is anticipated to continue in the years ahead. “Exports, however will remain challenging in certain geographies due to ongoing geo-political scenarios which we will negate by venturing into diverse geographies”, the company said.