Add UNO Minda Industries Ltd For Target Rs.1,300 by Choice Institutional Equities Ltd
Q1FY27 performance highlights:
UNOMINDA delivered another record quarter, with consolidated revenue increasing 26.0% YoY to INR 55,570 Mn, significantly outperforming the average industry growth, driven by strong volume growth, premiumisation and higher content per vehicle. EBITDA (before exceptional items) grew 21.0% YoY to INR 5,720 Mn, while margin moderated to 10.3% due to commodity inflation, wage revisions and pass-through timing differences
Broad-based growth across businesses: Growth remained diversified across all key verticals, with Casting emerging as the fastest-growing segment (+32% YoY), followed by Green Mobility (+78% YoY), Seating (+28% YoY), Switching (+20% YoY) and Lighting (+14% YoY). Aluminium die-casting continued to benefit from lightweighting and EV demand, while Green Mobility gained traction across EV chargers, EV systems and alternative fuel solutions, reinforcing the company's technology-led product portfolio
Strategic investments enhance growth visibility: The management continued to strengthen growth drivers through capacity expansion and new order wins. During the quarter, the company approved a INR-3,200 Mn greenfield passenger vehicle seating facility backed by an anchor customer, while the sunroof order book exceeded INR 5,000 Mn. The company also secured a INR4,500 Mn annual peak lighting order and expanded its global manufacturing footprint with the commissioning of the Indonesia lighting plant. We believe UNOMINDA remains well positioned to outperform the industry average growth, supported by premiumisation, electrification, rising vehicle electronics content and disciplined capital allocation
View and Valuation: We increase our FY27/FY28E EPS estimate by 2.3%/3.6%, respectively, factoring strong revenue momentum, favourable business mix and improving growth visibility. Accordingly, we increase our target price to INR 1,300. We maintain our ‘ADD’ rating on the stock considering a strong growth visibility from investments across EV powertrain and premium automotive technologies.
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SEBI Registration no.: INZ 000160131
