⚠ 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: 3.7
| Stock Code | UNOMINDA | Market Cap | 66,073 Cr. | Current Price | 1,145 ₹ | High / Low | 1,382 ₹ |
| Stock P/E | 69.6 | Book Value | 94.4 ₹ | Dividend Yield | 0.20 % | ROCE | 18.0 % |
| ROE | 17.7 % | Face Value | 2.00 ₹ | DMA 50 | 1,225 ₹ | DMA 200 | 1,172 ₹ |
| Chg in FII Hold | -0.15 % | Chg in DII Hold | 0.17 % | PAT Qtr | 339 Cr. | PAT Prev Qtr | 274 Cr. |
| RSI | 39.6 | MACD | -32.2 | Volume | 2,48,342 | Avg Vol 1Wk | 6,81,136 |
| Low price | 768 ₹ | High price | 1,382 ₹ | PEG Ratio | 1.24 | Debt to equity | 0.38 |
| 52w Index | 61.4 % | Qtr Profit Var | 5.93 % | EPS | 16.5 ₹ | Industry PE | 28.0 |
📊 Core Financials
- Revenue Growth: Quarterly PAT improved from 274 Cr. to 339 Cr., showing steady growth.
- Profit Margins: EPS at 16.5 ₹ reflects moderate profitability.
- Debt Ratios: Debt-to-equity at 0.38, manageable leverage for expansion.
- Cash Flows: Likely positive given consistent earnings and moderate debt.
- Return Metrics: ROCE at 18.0% and ROE at 17.7% highlight efficient capital utilization.
💹 Valuation Indicators
- P/E Ratio: 69.6, much higher than industry average (28.0), indicating premium valuation.
- P/B Ratio: ~12.1 (Current Price / Book Value), expensive relative to book value.
- PEG Ratio: 1.24, suggests valuation is somewhat aligned with growth expectations.
- Intrinsic Value: Current price (1,145 ₹) trades below DMA 50 (1,225 ₹) and DMA 200 (1,172 ₹), signaling technical weakness despite strong fundamentals.
🏢 Business Model & Competitive Advantage
- UNOMINDA operates in automotive components, supplying to OEMs and aftermarket segments.
- Competitive advantage lies in diversified product portfolio, strong client base, and innovation in auto electronics.
- Moderate debt and consistent profitability provide resilience in cyclical automotive markets.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive near 1,050–1,100 ₹, closer to support levels and below DMA averages.
- Long-Term Holding: Suitable for investors seeking exposure to automotive growth. Strong fundamentals support holding, though valuation premium should be monitored.
Positive
- Quarterly PAT improved from 274 Cr. to 339 Cr.
- ROCE (18.0%) and ROE (17.7%) highlight efficient capital use.
- DII holdings increased (+0.17%), reflecting domestic institutional support.
Limitation
- High P/E ratio compared to industry average.
- P/B ratio at ~12.1 indicates expensive valuation.
- Dividend yield at 0.20% offers negligible shareholder return.
Company Negative News
- FII holdings decreased (-0.15%), showing reduced foreign investor confidence.
- Stock trading below DMA 50 and DMA 200, reflecting bearish sentiment.
Company Positive News
- Quarterly PAT growth of 5.93% indicates steady operational improvement.
- Strong 52-week performance (61.4%) reflects investor optimism.
Industry
- Industry P/E at 28.0, much lower than UNOMINDA’s valuation, suggesting sector trades at more reasonable multiples.
- Automotive components sector benefits from rising vehicle demand and electrification trends.
Conclusion
- UNOMINDA is fundamentally strong with consistent profitability, efficient capital use, and diversified business model.
- Valuation is stretched compared to industry, limiting near-term upside.
- Best suited for long-term investors seeking automotive exposure, with entry near 1,050–1,100 ₹ offering better value.
I can also prepare a peer comparison HTML table (UNOMINDA vs Motherson Sumi, Bosch, Endurance Tech) to highlight relative valuation and efficiency metrics if you’d like.