Axis Securities, a brokerage house, has chosen Minda Corporation as its top pick of the week. Minda Corporation is a leading manufacturer of automotive components in India and has been experiencing significant growth. The brokerage has a ‘buy’ recommendation on the stock and has set a target price of ₹375, indicating a potential upside of over 10 percent from its current market price. Minda Corporation has been focusing on strengthening technical collaborations, expanding margins, and exploring inorganic growth opportunities.
Minda Corporation’s stock has seen a significant rise of 65 percent in the last year and has also performed well in 2023 so far. Despite a slight consolidation after reaching its peak, the stock is still up over 81 percent from its 52-week low. The company’s earnings for the June quarter showed a decline in net profit but a rise in revenue. During the quarter, Minda Corporation secured orders valued at around ₹3,000 crore, with 50 percent of the orders coming from the electric vehicle segment. The company is also focused on strengthening its technological partnerships and improving its margins.
Axis Securities has a positive view on Minda Corporation, as it expects the company to benefit from product premiumisation, the growth of electric vehicles, and increased business from original equipment manufacturers. The brokerage also sees potential growth opportunities for the company through organic and inorganic routes in the future. Overall, Axis Securities considers Minda Corporation as a promising investment choice in the automotive component manufacturing sector.
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