Minda Corporation bags ₹750 cr order for producing EV chargers; stock surges 5%

Auto component manufacturer Minda Corporation has bagged an order worth ₹750 crore from a leading original equipment manufacturer to produce battery chargers for electric vehicles, according to the regulatory filing by the company.

"This big order win underscores the company's commitment towards sustainable mobility and enhances its range of EV offerings," the company says.

The awarded product will be manufactured at the manufacturing facility of Spark Minda Green Mobility Systems Private Limited, a wholly-owned subsidiary of Minda Corporation Limited, in Pune.

"This prestigious order is a testament to Spark Minda’s robust EV product portfolio and our focus on customer centricity. This milestone underlines our commitment towards promoting sustainable mobility and our ability to adapt to the evolving demands of the global automotive industry," says Aakash Minda, Executive Director, Minda Corporation Limited.

According to the company, electric vehicles accounted for nearly 20% of Minda Corporation’s total orders win in FY23. "This project will further solidify Spark Minda’s stewardship towards green and connected mobility and underlines the company’s position as a forward-looking, future-ready organization, dedicated to revolutionizing the automotive sector through innovation and technological excellence," the company says.

Following the development, shares of Minda Corporation Limited surged as much as 5.6% to hit a 52-week high of ₹307.75 apiece on the BSE on Tuesday. The scrip opened a gap-down at ₹289, 0.8% lower than the previous closing price of ₹289 on the BSE. The scrip closed higher by 3.58% at ₹301.95. The auto component manufacturer’s market capitalisation stood at ₹7,219 crore, as more than 2.52 lakh shares exchanged hands on the BSE, as against the two-week average of 6.63 lakh shares. At present, the shares of Minda Corporation are trading 64.57% higher than the 52-week low of ₹187.

Incorporated in 1985, Minda Corporation has a diversified product portfolio that encompasses mechatronics, information and connected systems, plastic and interiors, electronic manufacturing excellence and Spark Minda Green Mobility for auto OEMs. These products cater to two-wheelers, three-wheelers, passenger vehicles, commercial vehicles, off-road vehicles and after-market.

According to the rating agency ICRA, revenue for the auto component industry is expected to grow by 5% to 8% owing to healthy domestic demand despite a high base and weak export environment.

The agency expects electric vehicle (EV) opportunities, premiumisation of vehicles, focus on localisation, improved export potential, and regulatory norms changes to translate into healthy growth for auto component suppliers over the medium to long term.

"Domestic OEM (original equipment manufacturer) demand constitutes almost 50% of sales for the Indian auto component industry. This is likely to remain healthy in FY2024, with high single-digit growth expected across segments except for tractors. Further, the replacement demand is expected to remain stable in FY2024, growing at 6-8%, supported by underlying demand drivers, including an increase in mobility, improving economic activity, and healthy freight movement," says  Vinutaa S, Vice President and Sector Head, Corporate Ratings, ICRA Limited.