Minda Corporation share price jumps over 10% after company targets 3x revenue growth by FY30. Should you buy?

Minda Corporation share price jumped over 10% in early trade on Wednesday after the auto component maker unveiled its ‘Vision 2030’, targeting a three-fold jump in revenue in FY30. Minda Corporation shares rallied as much as 10.14% to ₹588.35 apiece on the BSE.

Minda Corporation projects revenue growth from ₹5,056 crore in FY25 to over ₹17,500 crore in FY30. It has set a target to improve its EBITDA margin to 12.5% in FY30 from 11.4% in FY25, while reducing its debt-to-equity ratio to 0.3x from 0.6x over the same period. Return on Capital Employed (RoCE) is expected to rise to over 25% by FY30 from 20% in FY25.

To support its growth, Minda Corporation has outlined capital expenditure of around ₹2,000 crore over the next five years. It is setting up two new greenfield facilities in Die Casting and one greenfield facility for Instrument Clusters and has acquired land to support future expansion and strengthen regional footprint, Minda Corporation said in its investor presentation on September 23.

The company is transforming from a traditional component maker into a systems solutions provider, underpinned by three-fold increase in R&D spending over the last four years, a growing intellectual property portfolio, and strong EV-ready capabilities.

Its strategic priorities include expanding capacity with ~ ₹2,000 crore planned capex till FY30, scaling adjacencies through joint ventures, and enhancing engagement with global OEMs across two-wheelers, three-wheelers, passenger vehicles, commercial vehicles, and the aftermarket segment.

Commenting on the outlook, Chirag Jain, Deputy Head of Research at Emkay Global Financial Services Ltd said that the company’s roadmap aligns well with mobility megatrends, such as electrification, connectivity, software-defined vehicles, and premiumization.

He noted that the integration of Flash strengthens Minda’s electronics and powertrain capabilities in EVs along with a global footprint.

Jain maintained a ‘Buy’ rating on Minda Corporation shares with a target price of ₹600 per share, valuing it at 30x Sep-27E PER, and described the company as “well positioned as a structural compounder.”

Minda Corporation Share Price Performance

Minda Corporation share price has rallied 15% in one month and 8% in six months. The stock has gained 13% on a year-to-date (YTD) basis, while it has fallen 2% in one year. However, Minda Corporation share price has jumped 172% in three years and has delivered multibagger returns of 750% in five years.

At 9:50 AM, Minda Corporation share price was trading 8.02% higher at ₹577.00 apiece on the BSE.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.