Add UNO Minda Ltd For Target Rs. 1,150- Choice Broking Ltd
Strategic Focus on Future Technologies:
UNOMINDA is strategically focused on capturing growth in emerging technologies, particularly in Electric Mobility and Advanced Driver-Assistance Systems (ADAS). For electric vehicles, the company offers integrated solutions for electric two-wheelers, including chargers, BMS controllers, and sensors. A key development in Q1FY26 was the commencement of. commercial sales of BSE home charging solutions for electric two-wheelers, with OEM deliveries anticipated in the coming months. In the ADAS segment, a notable achievement was the commissioning of a new camera module production line, making UNOMINDA the first company in India to localize the production of camera modules for advanced assistance systems—a component that was previously fully imported. We believe UNOMINDA is well-positioned to capitalize on structural tailwinds from premiumization and electrification in the auto components sector, supported by strategic investments in highgrowth areas, thereby enhancing long-term growth visibility.
View and Valuation:. We revise our FY26/FY27 EPS estimates downwards by 2.8%/3.1%, and maintain our target price at INR 1,150, tweaking our multiple to 40x (earlier 42x) on the average FY27/28E EPS, while introducing FY28E estimates. Accordingly, we change our rating to ‘ADD’ (previously ‘BUY’)
Revenue in line, EBITDA and PAT beat estimates
* Revenue was up 17.6% YoY and down 0.9% QoQ to INR 44,891Mn (vs consensus est. at INR 44,404Mn).
* EBITDA was up 33.2% YoY and up 3.1% QoQ to INR 5,431Mn (vs consensus est. at INR 4,840Mn). EBITDA margin was up 142bps YoY and up 47bps QoQ to 12.1% (vs consensus est. at 11.4%).
* PAT was up 46.5% YoY and up 9.2% QoQ to INR 2,907Mn (vs consensus est. at INR 2,334Mn).
Capacity Ramp-Up to Support Demand and Competitiveness:
UNOMINDA is actively pursuing significant capacity expansion and operational efficiency improvements to support its future growth trajectory. Uno Minda currently has approximately 13 ongoing expansion projects across multiple plants. Several of these projects are expected to become operational within the current financial year, including Phase 1 of the four-wheeler plant at Kharkhoda, the lighting manufacturing facility in Indonesia, and a new die-casting facility. While the high capital expenditure associated with these new ventures may put pressure on margins in the near term, we believe these strategic investments in infrastructure are essential for meeting anticipated demand and sustaining the company’s competitive edge. UNOMINDA (INR Mn) Q1FY26 Q
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SEBI Registration no.: INZ 000160131
