Analysis Of Minda Corporation Ltd: Leveraging Strategic Financial Tools And Analytics

Mahadevan Sriram

Informasi Dasar

58 kali
24.10.254
658.15
Case Studies
17 A

Nimmy Jacob, a newly recruited research analyst with an equity research firm, was entrusted with tracking the “auto ancillary industry”, specifically “Minda Corporation Ltd” (MIL). MIL was a leading diversified auto components manufacturing companies in India. The company’s share price meteorically rose during February 2021–2022 (Figure 1). The company’s turnover over the past few years had grown at a compounded annual growth rate of 15% during the three preceding years. The company had in the recent past bought a 15% stake in another competitor, Pricol Ltd, for a consideration of INR 400 crores and previously had used joint ventures and acquisitions to scale up its operations. Jacob, apart from the conventional financial analysis, had to ascertain whether all the strategic decisions were adding value to the shareholders’ investments by exploring the various tools available for the same and also calculate the minimum expected rate of return for MIL. Jacob was apprehensive about the financial statements, although the numbers for the company were good. Jacob was skeptical about a high-growth company having the incentive to manipulate its earnings. Manipulations could be in the form of abnormal increase in accruals, inconsistency in expenses and high days of receivables. Therefore, Jacobs used certain analytics/statistical tools to detect any manipulation of numbers in the financial statements of the company and to ascertain apt findings about the company.

Subjek

FINANCIAL MANAGEMENT
 

Katalog

Analysis Of Minda Corporation Ltd: Leveraging Strategic Financial Tools And Analytics
ISSN: 2045-0621
9p.: pdf file.; 202 KB
English

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Mahadevan Sriram
Perorangan
 
 

Penerbit

Emerald
New York
2024

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