UNO Minda
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Uno Minda's management maintains a bullish outlook, emphasizing a strategic shift from component supplier to systems provider, particularly in the electric vehicle (EV) sector. This transition is supported by a robust order book and aggressive capacity expansion, with 11 new projects expected to drive earnings growth over the next 12-24 months. Despite facing near-term challenges from commodity inflation and regulatory complexities, the company's focus on premiumization and green mobility positions it favorably for sustained revenue growth. Vista's financial outlook reflects stable revenue growth and margins, aligning with management's confidence in operational efficiencies and new customer acquisitions. The anticipated expansion in EV-related product lines and the commissioning of new facilities are expected to enhance market share and profitability. However, headwinds such as rising material costs and geopolitical tensions could impact margins. Overall, Uno Minda is well-positioned to capitalize on the structural tailwinds in the auto ancillaries sector, with a target price of INR 1,444.65, reflecting an expected upside of approximately 15.6%. Key opportunities include the scaling of EV production and export penetration, while watchpoints include commodity price volatility and macroeconomic uncertainties
Why We Like This Stock
- Strong order book and aggressive capacity expansion in high-value automotive systems
- Transition to a systems provider enhances competitive positioning and market share
- Focus on premiumization and green mobility aligns with industry trends and consumer demand
Things To Watch Out For
- Near-term margin pressures from commodity inflation and regulatory complexities
- Geopolitical tensions may disrupt supply chains and impact operational efficiency
- Potential gross margin compression from new, lower-margin business segments
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 14,031 | 16,775 | 19,658 | 21,365 | 24,292 |
| Profit Before Tax (Cr.) | 1,163 | 1,295 | 1,644 | 1,737 | 2,024 |
| PBT Margin | 8.3% | 7.7% | 8.4% | 8.1% | 8.3% |
| Net Profit (Cr.) | 882 | 987 | 1,272 | 1,337 | 1,451 |
| Earnings Per Share | 14.4 | 15.7 | 20.5 | 21.6 | 25.1 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Jeffries | ▲ Buy | 1,383 | 23-Aug-2026 |
| Macguire | ▲ Outperform | 1,383 | 07-Aug-2026 |
| Motilal Oswal | ▲ Buy | 1,406 | 06-Aug-2026 |
| CLSA | ▲ Outperform | 1,469 | 05-Aug-2026 |
| Nomura | ▲ Buy | 1,532 | 05-Aug-2026 |
| Deven Choksey | ▲ Buy | 1,292 | 19-May-2026 |
| Goldman Sachs | ▲ Buy | 1,440 | 19-May-2026 |
| Kotak Securities | ▼ Sell | 1,000 | 19-May-2026 |
Company Overview
Show Company Profile
Uno Minda Limited, together with its subsidiaries, manufactures and supplies auto components and systems in India and internationally. It provides alloy wheels, automotive switches, horns, infotainment systems, speakers, socket assemblies, fuel hoses, sensors, actuators, controllers, telematics and connected solutions, alternate fuel systems, air filtration systems, canisters, seat head rest and arm rests, luggage boards, automotive wireless chargers, seat recliner mechanism, multi-mode drive switches, USB chargers, wheel covers, seat belts, shifters, cameras, air ducts and washer bottles, EA pads, spoilers, steering wheels with air bags, body sealings, fuel caps, and brake hoses. The company also offers automotive seats, switches and lights, heated grips, customized switches, die casting components, batteries, handle bar assemblies, combined braking systems, relays, and noise supressor caps; off board chargers, and battery management products; combination switches, lamps, traction motors, motor controllers, and intelligent transport systems; and lever combinations, DC converters, smart plugs, and FNR switches. It also offers sunroofs, blow molded parts, vehicle control unit, and telematics. In addition, the company provides products for 4 wheelers, 2/3 wheelers, 2 and 3-wheeler EVs, off road, and commercial vehicles. Further, it sells its products to original equipment manufacturers. The company was formerly known as Minda Industries Limited and changed its name to Uno Minda Limited in July 2022. The company was founded in 1958 and is headquartered in Gurugram, India.