⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
UNOMINDA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.9
| Stock Code | UNOMINDA | Market Cap | 62,049 Cr. | Current Price | 1,075 ₹ | High / Low | 1,382 ₹ |
| Stock P/E | 63.6 | Book Value | 94.4 ₹ | Dividend Yield | 0.21 % | ROCE | 18.9 % |
| ROE | 18.5 % | Face Value | 2.00 ₹ | DMA 50 | 1,164 ₹ | DMA 200 | 1,168 ₹ |
| Chg in FII Hold | -0.15 % | Chg in DII Hold | 0.17 % | PAT Qtr | 184 Cr. | PAT Prev Qtr | 339 Cr. |
| RSI | 40.8 | MACD | -41.5 | Volume | 15,77,219 | Avg Vol 1Wk | 13,42,132 |
| Low price | 768 ₹ | High price | 1,382 ₹ | PEG Ratio | 1.14 | Debt to equity | 0.38 |
| 52w Index | 50.0 % | Qtr Profit Var | 16.7 % | EPS | 16.5 ₹ | Industry PE | 25.0 |
📊 Financials
- Revenue Growth: Moderate, PAT declined to 184 Cr from 339 Cr
- Profit Margins: EPS at 16.5 ₹, showing profitability but under pressure
- Debt Ratios: Debt-to-equity at 0.38, manageable leverage
- Cash Flows: Supported by consistent operations, though recent profit dip raises caution
- Return Metrics: ROCE 18.9% and ROE 18.5% indicate solid efficiency
💹 Valuation
- P/E Ratio: 63.6, much higher than industry average (25.0), suggesting overvaluation
- P/B Ratio: ~11.4 (Current Price / Book Value), expensive
- PEG Ratio: 1.14, indicating fair valuation relative to growth
- Intrinsic Value: Overvalued compared to peers, but supported by brand strength
🏢 Business Model & Health
- Business Model: Auto components manufacturing, diversified across lighting, switches, and electronics
- Competitive Advantage: Strong OEM partnerships, innovation-driven growth
- Overall Health: Financially sound with growth visibility, though valuations are stretched
🎯 Entry Zone Recommendation
- Entry Zone: Attractive near 1,050–1,100 ₹ levels (close to DMA 50)
- Long-Term Holding: Suitable for growth investors; dividend yield (0.21%) adds minimal stability
✅ Positive
- Strong ROCE (18.9%) and ROE (18.5%) show efficiency
- DII holdings increased (+0.17%), showing domestic institutional support
- PEG ratio (1.14) suggests fair valuation relative to growth
⚠️ Limitation
- P/E ratio significantly higher than industry average
- P/B ratio expensive compared to peers
- Dividend yield is very low (0.21%)
📉 Company Negative News
- FII holdings decreased (-0.15%), showing reduced foreign investor confidence
- Quarterly PAT declined (184 Cr vs 339 Cr)
- Technical indicators (RSI 40.8, MACD -41.5) suggest weak momentum
📈 Company Positive News
- DII holdings increased (+0.17%), showing domestic support
- Quarterly profit variation (+16.7% YoY) indicates growth despite sequential decline
🏭 Industry
- Auto components industry P/E: 25.0, much lower than UNOMINDA’s valuation
- Sector demand driven by automotive expansion and electrification trends
🔎 Conclusion
- UNOMINDA is financially strong with consistent profitability and solid efficiency metrics
- Valuation is expensive compared to industry peers, though PEG suggests fair growth potential
- Entry near 1,050–1,100 ₹ offers better risk-reward; suitable for long-term investors focused on auto sector growth