UNOMINDA - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.4

📊 Core Financials Breakdown

Profitability

ROCE: 18.0% and ROE: 17.7% — strong indicators of efficient capital use.

EPS: ₹16.2, with PAT rising from ₹179 Cr. to ₹274 Cr. — a robust 95.2% quarterly growth, signaling strong operational momentum.

Debt-to-equity: 0.40 — moderate leverage, well-managed for a manufacturing firm.

Dividend Yield: 0.17% — minimal, as the company prioritizes reinvestment for growth.

Institutional Sentiment

FII holding declined (-0.50%), while DII increased (+0.65%) — domestic investors remain optimistic.

💰 Valuation Metrics

Metric Value Insight

P/E Ratio 81.2 Extremely high vs. industry average (29.0) — priced for aggressive growth.

P/B Ratio ~15.7 Elevated, but typical for high-growth auto component firms.

PEG Ratio 1.45 Reasonable — valuation aligns with expected earnings growth.

Intrinsic Value ~₹1,200–₹1,250 (est.) Current price of ₹1,313 is slightly above fair value.

🧠 Business Model & Competitive Edge

Core Operations: UNO Minda designs and manufactures auto components including lighting systems, switches, sensors, alloy wheels, and infotainment systems.

Strengths

Strong OEM relationships with leading automakers.

Diversified product portfolio across ICE and EV segments.

High innovation quotient and global footprint.

Challenges

Elevated valuation and low dividend yield.

RSI at 64.0 — nearing overbought territory.

MACD at 37.3 — bullish momentum, but may be peaking.

📈 Entry Zone & Technicals

DMA 50: ₹1,199, DMA 200: ₹1,058 — price is above both, indicating strength.

RSI: 64.0 — approaching overbought.

MACD: 37.3 — strong bullish momentum.

📌 Entry Zone: ₹1,200–₹1,250 — ideal for accumulation on dips.

🕰️ Long-Term Holding Guidance

2025 Target: ₹1,564.99 (bullish scenario)

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2026 Target: ₹2,437.71 (based on technical projections)

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2030 Target: ₹3,800+ (based on Fibonacci and machine learning models)

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Holding Strategy: UNO Minda is a high-quality compounder with strong fundamentals, scalable operations, and exposure to both ICE and EV growth. Ideal for long-term investors seeking consistent earnings growth and industry leadership. Accumulate during technical weakness and hold through cycles.

You can explore more on UNO Minda’s Trendlyne dashboard or review long-term forecasts on Dailybulls’ projection page

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dailybulls.in

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trendlyne.com

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