Pricol - Minda Buys Stake From Open Market, Reaffirms Our Thesis Of Healthy Capabilities: ICICI Direct

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .ICICI Direct Report.Minda Corporation Ltd. on Friday, February 17, 2023 acquired 1.91 crore shares of Pricol Ltd. representing 15.7% of total paid-up capital for ~Rs 400 crore (~Rs 209 per share) from open market saying it was a financial investment.We believe this transaction by Minda Corp in the secondary market has some strategic intent, which the acquirer has not yet clearly spelled out. Promoters at Pricol, however, have time and again conveyed their full support to the company with no intention to cede control or sell a stake. Further developments in this space are awaited. However, it does clearly demonstrate the future content rise potential in digital instrument cluster space of which Pricol is a prominent player with proven technological capabilities, new tie-ups as well as customer relationships. Key triggers for future price performance:Consistent focus on de-leveraging of balance sheet amid calibrated capex spends.Growing presence in passenger vehicle space with healthy wallet share at Tata Motors Ltd.With innovative product launches, customer wins and tech tie-ups; sales, profit after tax are expected to grow at 18.8%, 44.5% copound annual growth rate, respectively, over FY22- 25E. Margins are seen improving to 12.2% by FY25E..Click on the attachment to read the full report:.Minda Corp - Acquires Stake In Pricol As Financial Investment, Strategic Intent Not Dispelled: ICICI Direct.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Pricol - Minda Buys Stake From Open Market, Reaffirms Our Thesis Of Healthy Capabilities: ICICI Direct

This transaction by Minda in the secondary market has some strategic intent, which the acquirer has not yet clearly spelled out.

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