{"id":574,"date":"2019-12-27T09:58:24","date_gmt":"2019-12-27T09:58:24","guid":{"rendered":"http:\/\/www.assetmultiplier.co.in\/blog\/?p=574"},"modified":"2019-12-27T09:58:26","modified_gmt":"2019-12-27T09:58:26","slug":"focus-on-vertical-strengthening-of-product-portfolio-market-momentum-expected-in-q4-sunil-bothra-minda-industries","status":"publish","type":"post","link":"https:\/\/www.assetmultiplier.co.in\/blog\/2019\/12\/27\/focus-on-vertical-strengthening-of-product-portfolio-market-momentum-expected-in-q4-sunil-bothra-minda-industries\/","title":{"rendered":"Focus on vertical strengthening of product portfolio, market momentum expected in Q4: Sunil Bothra, Minda Industries"},"content":{"rendered":"\n<p><strong>Update&nbsp;on the Indian Equity Market:<\/strong><\/p>\n\n\n\n<p>On Thursday, Nifty closed 0.7% lower at 12,126. Among the stocks, ONGC(+2.5%), Vedanta (+1.9%) and JSW Steel (+1.0%) were the gainers. Yes Bank (-4.4%), Bharti Airtel (-2.0%), and Reliance (-1.9%) ended in the red. Nifty Media (+0.1%) and Nifty Metal (+0.6%) were the only sectors which ended in the positive. Nifty PSU Bank (-1.5%), Nifty Pharma (-0.9%) and Nifty Bank (-0.9%) were the worst-performing sectors.<\/p>\n\n\n\n<p><strong>Focus on vertical strengthening of\nproduct portfolio, market momentum expected in Q4: Sunil Bothra, Minda\nIndustries<\/strong><\/p>\n\n\n\n<p>Excerpts from an interview with Mr Sunil Bothra, Executive Director and Group Chief Financial Officer, Minda Industries:<\/p>\n\n\n\n<ul><li>The existing sensor business is more than 5 years\nold and as part of their strategy, they are in a long-term partnership with\nSensata Technologies. <\/li><li>Sensata, which was previously Texas Instruments\nhave many businesses which are into defence and other technologies.<\/li><li>Minda Industries has entered into an agreement with\nSensata to acquire the wheel speed sensor business. The agreement will help to\nacquire the customer base in India and South Korea and will also make global\nopportunities available.<\/li><li>Although the acquisition cost only \u20b9 45 crore, it\nis expected to generate an additional revenue of \u20b9100-120 crore in the next\nfour years. With this acquisition, the fresh investment in the sensor business will\nreach \u20b9 145 crore and it is expected to generate revenue of \u20b9 500-600 crore in\nthe next 4-5 years. <\/li><li>The company has been focussing on vertically\nstrengthening the product portfolio, which they have done by undertaking small\nacquisitions. Now that they have more than 30 businesses or products, the focus\nis on strengthening their technological capability and offering to the OEs. <\/li><li>The recently concluded acquisition of Delvis will\nhelp strengthen their technology position in 4-wheeler lamps, thereby strengthening\nthe sensor business.<\/li><li>Talking about the demand, he said the company has\nseen some green shoots in October, which led to a little increase in volume in\na few original equipment manufacturers in November.<\/li><li>Since December is generally a lean period, Q3 is\nnot very bullish as compared to Q2.<\/li><li>Some market momentum is expected in Q4. But they\nwill have to wait and see how the market pans out post the BS-VI launch from\nApril 1, since there will be price impact of 10-12%. <\/li><li>If they are able to increase their kit value per\ncar or 2-wheeler or OE in Q4, they are hopeful of continuing the\noverperformance in the near future. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <\/li><\/ul>\n\n\n\n<p>Consensus Estimate: (Source: market screener\nwebsite)<\/p>\n\n\n\n<ul><li>The closing\nprice of Minda Industries was&nbsp;\u20b9 348 \/- as of 26-December-19. It traded at\n32.8 x\/ 23.4x \/ 18.5x the consensus EPS estimate for FY20E\/ FY21E\/ FY22E\nof&nbsp;\u20b9&nbsp;10.6\/14.9 \/18.8 respectively.<\/li><li>Consensus\ntarget price of \u20b9 383\/- implies a PE multiple of 20.4x on FY22E EPS of \u20b9 18.8\/-.<\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Update&nbsp;on the Indian Equity Market: On Thursday, Nifty closed 0.7% lower at 12,126. Among the stocks, ONGC(+2.5%), Vedanta (+1.9%) and JSW Steel (+1.0%) were the gainers. Yes Bank (-4.4%), Bharti Airtel (-2.0%), and Reliance (-1.9%) ended in the red. Nifty Media (+0.1%) and Nifty Metal (+0.6%) were the only sectors which ended in the positive. [&hellip;]<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[222],"tags":[44,221,220,129],"_links":{"self":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/574"}],"collection":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/comments?post=574"}],"version-history":[{"count":1,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/574\/revisions"}],"predecessor-version":[{"id":575,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/574\/revisions\/575"}],"wp:attachment":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/media?parent=574"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/categories?post=574"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/tags?post=574"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}