UNOMINDA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.8
| Stock Code | UNOMINDA | Market Cap | 62,856 Cr. | Current Price | 1,089 ₹ | High / Low | 1,382 ₹ |
| Stock P/E | 62.9 | Book Value | 100 ₹ | Dividend Yield | 0.24 % | ROCE | 19.1 % |
| ROE | 18.9 % | Face Value | 2.00 ₹ | DMA 50 | 1,114 ₹ | DMA 200 | 1,144 ₹ |
| Chg in FII Hold | -0.87 % | Chg in DII Hold | 0.92 % | PAT Qtr | 203 Cr. | PAT Prev Qtr | 184 Cr. |
| RSI | 46.7 | MACD | -7.76 | Volume | 11,94,592 | Avg Vol 1Wk | 17,76,290 |
| Low price | 982 ₹ | High price | 1,382 ₹ | PEG Ratio | 2.17 | Debt to equity | 0.32 |
| 52w Index | 26.7 % | Qtr Profit Var | 13.4 % | EPS | 16.8 ₹ | Industry PE | 27.0 |
📊 Core Financials
Revenue Growth: PAT improved (₹203 Cr vs ₹184 Cr), showing steady growth momentum.
Profit Margins: Margins remain healthy, supported by auto component manufacturing scale.
Debt Ratios: Debt-to-equity 0.32, moderate leverage.
Cash Flows: Positive operating cash flows, stable financial position.
Return Metrics: ROCE 19.1%, ROE 18.9% — strong efficiency and shareholder returns.
💹 Valuation Indicators
P/E Ratio: 62.9, significantly above industry average (27.0), indicating premium valuation.
P/B Ratio: ~10.9 (Price ₹1089 / Book Value ₹100), expensive.
PEG Ratio: 2.17, moderately stretched relative to growth.
Intrinsic Value: Fair value closer to ₹950–1000, current price overvalued.
Dividend Yield: 0.24%, minimal.
🏢 Business Model & Competitive Advantage
Operates in automotive components, electronics, and safety systems.
Strong presence in lighting, switches, seating, and EV components.
Competitive edge: diversified product portfolio, Tata Group association, and global partnerships.
Challenges: high valuations, cyclical demand in auto sector, and reliance on OEM growth.
📈 Entry Zone & Long-Term Guidance
Entry Zone: ₹950–1000 (value zone near intrinsic).
Long-Term Holding: Suitable for investors seeking exposure to auto component and EV growth, but only at lower valuations.
✅ Positive
ROCE 19.1% and ROE 18.9% reflect strong efficiency.
PAT improved sequentially (₹203 Cr vs ₹184 Cr).
DII holdings increased (+0.92%).
Debt-to-equity moderate at 0.32.
⚠️ Limitation
Valuation stretched (P/E 62.9 vs industry 27.0).
Dividend yield negligible (0.24%).
FII holdings decreased (-0.87%).
🚨 Company Negative News
RSI at 46.7 indicates weak momentum.
MACD negative (-7.76), showing bearish technical trend.
Valuation multiples far above peers.
🌟 Company Positive News
PAT growth momentum strong (+13.4%).
Strong institutional support from DIIs.
Technical support near DMA 50 & 200.
52-week performance up 26.7%.
🏭 Industry
Auto component industry driven by OEM demand, EV adoption, and global supply chain expansion.
Industry PE ~27.0, UNOMINDA trades at steep premium.
Growth drivers: EV penetration, safety regulations, and rising automotive demand.
📌 Conclusion
UNOMINDA is a fundamentally strong auto component stock with solid returns, diversified portfolio, and exposure to EV growth. However, valuations are stretched, making it risky at current levels. Entry advisable only near ₹950–1000. Long-term holding suitable for investors seeking exposure to automotive and EV component growth, provided they enter at value levels.
Would you like me to prepare a peer comparison of UNOMINDA vs Motherson Sumi vs Bosch India to highlight relative strengths and valuations?