Minda Corporation Limited (NSE: MDA) emerges as a compelling growth story in India's auto components sector, according to DevenChoksey Research's latest analysis. The firm maintains a BUY rating with a 15.6% upside target of Rs 624, citing robust order pipelines worth Rs 80,000 crore and strategic acquisitions positioning the company for EV dominance. While Q4FY25 revenue grew 8.7% YoY to Rs 13,213 crore, net profit dipped 26.5% due to finance costs from the Flash Electronics acquisition - a calculated move expected to yield three-digit crore synergies by FY27. The stock currently trades at 27.8x FY27E EPS, with management guiding 35.1% PAT CAGR through FY25-FY27.

Operational Resilience Meets Electrification Momentum

Minda's mechatronics division (49.5% revenue share) delivered 10.8% YoY growth, powered by premium two-wheeler demand. The company now supplies 25% of its order book to EV platforms, with digital clusters constituting 30% of instrument cluster revenues. A partnership with Sanco aims to boost high-voltage connector localization from 15% to 25% within two years.

Financial Engineering: Short-Term Pain for Long-Term Gain

The Rs 12,500 crore net debt position (1.8x EBITDA) reflects strategic bets on capacity expansion and acquisitions. Two greenfield plants for die-casting and connected systems will absorb Rs 2,500-3,500 crore FY26 capex. Depreciation is expected to stabilize at Rs 550-600 crore quarterly as new facilities ramp up.

Valuation Matrix: Growth at Reasonable Multiple

DevenChoksey's 32x FY27 EPS valuation accounts for:

• 12.3% revenue CAGR (FY25-27)
• 19.6% EBITDA CAGR
• 35.1% PAT CAGR

The stock trades at 50.7x FY25 P/E, compressing to 27.8x by FY27 - attractive for a market leader in auto electrification.

Technical Levels: Accumulate on Dips

Traders should note key price zones:

The 15.2% discount to 52-week high (Rs 652) offers entry window before FY26 capacity ramp-ups.

Risk-Reward Calculus: Why BUY Makes Sense

DevenChoksey identifies three asymmetric opportunities:

1. EV content per vehicle doubling to Rs 18,000 by 2027
2. Export contribution expanding from 7% to 15% in 3 years
3. Margin expansion to 12.9% through operational leverage

With promoter warrant conversion imminent (Rs 4,200 crore equity infusion) and debt/equity targeting 0.2x, Minda combines growth with balance sheet repair - a rare combo in capital-intensive sectors.

The Final Verdict: Accelerating Through the EV Curve

Minda Corporation presents a compelling play on India's auto component localization and electrification themes. While near-term margin pressures from the Flash integration persist, the strategic acquisition provides critical EV subsystems capabilities. Investors with 18-24 month horizons should accumulate shares below Rs 550, targeting Rs 624 as FY27 projections materialize. Stop-loss: Rs 475 on weekly closing basis.