MINDACORP

's Ambitious Vision 2030 for Tripled Revenue 🚗

Ltd has unveiled Vision 2030, aiming to triple its revenue to ₹17,500 crore by the fiscal year 2030, a projected Compound Annual Growth Rate (CAGR) of 28% from the FY25 revenue of ₹5,056 crore. The stock reacted positively to this plan, rising 7.5% in two trading sessions. Focus on Profitability and Efficiency: In addition to revenue growth, the company targets significant improvement in efficiency. It expects to increase its EBITDA margin to over 12.5% (from 11.4% in FY25) and boost its Return on Capital Employed (RoCE) to over 25% (from 20% in FY25). Strategic Shift and Product Mix: Minda is transitioning from a mere component supplier to a full-fledged automotive systems solutions provider. This premiumization will be driven by high-value products like smart access systems, cockpit electronics, and EV wiring harnesses. New Product JVs: Key growth will come from new joint ventures (JVs) for switches (Toyodenso), sunroofs (HCMF), and EV connectors (Sanco). A 49% JV with Flash Electronics also adds critical EV technology like traction motors and controllers. R&D and Revenue Re-Balancing: Minda has significantly increased its R&D spend, which reached 4.3% of revenue in FY25, resulting in over 300 patents. By FY30, the revenue mix is projected to shift, with the contribution from Passenger Vehicles growing to 25% (from 14% in FY25), while two-wheelers decline to 40% (from 47%). Financial Strength for Expansion: The growth plan is supported by a ₹2,000 crore capital expenditure plan. The company intends to fund this through internal accruals and by releasing ₹1,000 crore from working capital, which is expected to reduce its net debt-to-equity ratio to a comfortable 0.3x by FY30. Successful execution of this ambitious plan is crucial to justify its current premium valuation and achieve a meaningful re-rating.