Minda Corp shares hit record high in early trade; here’s why

Shares of Minda Corporation Ltd hit a record high today after the Spark Minda Group flagship firm said its board has approved raising up to Rs 600 crore via securities.

The stock opened higher at Rs 301 today against the previous close of Rs 298.35 on BSE. Later, it hit record high of Rs 301.80 in early deals.

The auto parts stock has risen 39.83% in one year and gained 45.03% since the beginning of this year. Minda Corp shares have climbed 10% in a month. Total 0.55 lakh shares of the firm changed hands amounting to a turnover of Rs 1.64 crore on BSE. Market cap of the firm rose to Rs 7092.29 crore on BSE.

In terms of technicals, the relative strength index (RSI) of the Minda Corp stock stands at 69, signaling it's neither trading in the overbought nor in the oversold zone. Minda Corp shares have a beta of 0.9, indicating low volatility in a year. Minda Corp shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

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“The board of directors of Minda Corporation has approved the proposal of raising funds by way of further issuance of securities through public and/or private offerings, including preferential issue, qualified institutions placement, and further public offer for an aggregate amount not exceeding Rs 600 crore,” the company said in a regulatory filing.

On May 19, Minda Corp reported its Q4 and annual earnings.

Net profit rose 60.74 per cent to Rs 121.94 crore in the March quarter against Rs 75.86 crore in the corresponding quarter last year.

Revenue climbed 13 per cent to Rs 1074.55 crore in the March quarter against Rs 947.76 crore in the corresponding quarter last year. The board recommended a dividend of Rs 0.30 per equity share with a face value of Re 1 each for the year ended on March 31, 2023.

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The Board of Directors of Minda Corporation recommended final dividend of Rs 0.80 per equity share (face value of Rs. 2 per share) for the financial year 2022-23. This dividend together with the interim dividend of Rs 0.40 per equity share, aggregated the total dividend for the year 2022-23 to Rs 1.20/- per equity share.

In the last fiscal, sales zoomed 44.50% to Rs 4300.14 crore against sales of Rs 2975.74 crore in the previous fiscal. Net profit climbed 48.27% to Rs 284.50 crore in FY23 against Rs 191.88 crore in the previous fiscal. Operating profit rose 56.67% to Rs 461.49 crore for the March 2023 fiscal against Rs 294.56 crore in the previous fiscal.

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