UNOMINDA - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.1

Here’s an in-depth review of Uno Minda Ltd. (UNOMINDA) based on the numbers and strategic footprint

📊 Core Financial Highlights

Profitability Metrics

ROE: 17.5%, ROCE: 18.8% — strong and well above average for the auto ancillary space

EPS: ₹16.4 — healthy earnings base; supports future scale

Quarterly PAT: ₹266 Cr vs ₹233 Cr — consistent profitability, although minor dip in growth

Leverage & Cash Flows

Debt-to-Equity: 0.43 — comfortably low, manageable capital structure

Continued PAT consistency implies balanced cash flows and reinvestment capacity

📈 Valuation Analysis

Metric Value Insights

P/E Ratio 65.9 High relative to industry (31.2) — reflects premium growth pricing

P/B Ratio ~10.74 Rich valuation — could be justified by brand and efficiency

PEG Ratio 1.67 Slightly stretched — growth not undervalued but within reason

Dividend Yield 0.21% Minimal — reinvestment-focused strategy

🚗 Business Model & Competitive Strength

Core Sector: Auto components — switches, lighting, sensors, and electronics for 2W, PV, and CV segments

Strategic Edge

Strong OEM partnerships (Maruti, Hyundai, Tata, Honda)

Diversified geography — presence in India, ASEAN, and Europe

Focus on EV-compatible components and R&D integration

Growth Catalysts

Auto industry rebound

Rising demand for feature-rich vehicles

Increasing electronics content per vehicle

📉 Technical Overview

RSI: 48.3 — neutral zone, lacks momentum triggers

MACD: 2.13 — mild bullish bias, confirms accumulation range

DMA Status: Price hovering around 50-DMA and slightly above 200-DMA — near a consolidation pivot

Volume: Slight dip below average — watch for breakout confirmation

🎯 Entry Zone & Strategic View

Suggested Entry: ₹1,035–₹1,060 — near short-term support with margin of safety

12–18 Month Target Range: ₹1,250–₹1,350 if momentum and auto demand persist

Ideal for: Growth-focused investors keen on capturing India’s auto electrification wave; mid-to-long horizon works best given elevated valuations

Would you like to compare Uno Minda with Suprajit or Endurance Tech for alternate plays in the auto component arena? Or map trends in EV adoption that could lift component stocks across the board? Let’s rev it up. 🛞

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