UNOMINDA - Investment Analysis

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

Investment Rating: 3.7

🚗 Fundamental Analysis of UNOMINDA (Minda Industries Ltd.)

✅ Strengths

Solid Profitability & Efficiency

ROCE: 18.8%, ROE: 17.5% — strong capital deployment

EPS: ₹16.4 — decent earnings base

Debt-to-Equity: 0.43 — moderate leverage, manageable

Growth-Oriented Business

PAT Qtr: ₹266 Cr vs ₹233 Cr — consistent earnings

DII Sentiment: +0.65% — domestic institutions increasing exposure

MACD: +2.13 — bullish crossover, early signs of upward momentum

Price Action

Trading near DMA 50 & above DMA 200 — technically stable

RSI: 48.3 — neutral zone, room for upside

⚠️ Concerns

Valuation Premium

P/E: 65.9 vs Industry PE: 31.2 — trading at a steep premium

Book Value: ₹99.8 vs Price: ₹1,072 — ~10.7x book

PEG Ratio: 1.67 — slightly expensive relative to growth

Weak Dividend Yield: 0.21% — minimal income for long-term holders

FII Sentiment: -0.50% — foreign investors trimming exposure

Quarterly Profit Dip: -1.18% — minor decline, but worth monitoring

📉 Valuation & Ideal Entry Zone

Given current price and technical indicators

Ideal Entry Zone: ₹1,000–₹1,050

Near DMA 200 and psychological ₹1,000 level

Offers better margin of safety if valuation compresses

🧭 Long-Term Investment Outlook

UNOMINDA is a strong long-term candidate in the auto ancillary space, with solid ROE/ROCE and consistent earnings. However, valuation is rich, and growth expectations are priced in.

Holding Period: 3–5 years

Suitable for growth-focused investors

Potential upside from EV components, premiumization, and global expansion

🚪 Exit Strategy (If Already Holding)

Partial Exit Zone: ₹1,200–₹1,250

Near previous highs and valuation ceiling

Full Exit

If ROE drops below 14%

If PEG rises above 2.0 without EPS growth

If price breaks below ₹950 and fails to recover over 2 quarters

Reinvest: Only if valuation normalizes and earnings growth resumes

Would you like a comparison with other auto component leaders like Bosch, Sundram Fasteners, or Sona BLW to assess portfolio balance?

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