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Uno Minda in Q1FY25, reported a lower than expected performance. Revenue during the quarter, saw a
growth of 23.4% YoY to Rs.38.175bn vs est of Rs.39.84bn. Healthy top line growth was backed by strong
growth in the switch and lighting segment which saw a growth of 14% and 26% respectively on yearly
basis. Switch business growth was supported by export order in the 2W segment. Other segment which
saw a growth of 68% YoY basis was largely driven by consolidation of Minda Westport during the
quarter. Gross profit up by 22.7% YoY to Rs.13.57bn. EBIDTA margin for the quarter remained largely flaton yearly basis to 10.7% vs (est of 12.4%) due to sharp jump in employee cost which grew by 21.8% YoY.PAT for the quarter jumped by 15% YoY to Rs.2bn. Management expects in FY25 revenue to grow betterthan industry with margin in the range of 11-11.5%. During the quarter the company also announcedplans to foray into sunroof mfg. from Q4FY27. Company has made a TLA with Aisin Corporation, Japanand earmarked the investment of Rs.62.5cr.

* In alloy wheel, to meet growing demand, the company is expanding the Bawal facility by an additional
30,000 capacities, scheduled for commissioning in Q2FY25, also securing land for another 30,000
capacity expansion in Bawal, with the implementation work to commence shortly. Construction of a
new 120,000 wheel-per-month greenfield plant at IMT Karkoda is progressing as planned.

* Positive shift in Alloy wheel and Lighting: Company is adding up new greenfield capacity in 4W alloy
wheel in addition to Bawal and Pune (2W alloy wheel) and 4W lighting in Vietnam and Pune. In alloy
wheel overall penetration in 4W segment in India is around 40-45% vs global penetration of 90-95%,
management expects penetration in India to reach 70-75% over next 5-7 years resulting in 3-4x
growth. In lighting segment Management anticipates further revenue improvement in this segment in
the upcoming quarters, driven by the commencement of production for a new customer from Pune
plant and intend to increase segment revenue share from current ~14-15% to 19-20% over next 4-5
years. In the EV segment, the company further increases its presence in EV component supply by
signing TLA with StarCharge for 4W-home EV charging. Casting segment is also on healthy growth
phase, driven by several factors: increasing penetration of alloy wheels in both the 2W and PV, rising
demand for alloy wheels in the replacement sector, and capacity expansion currently company have
10% market share in 2W alloy and aiming to reach to 16% in coming year and in PV current market
share is around 45%.

View and Valuation: UNO Minda is focusing on high-growth auto components like Alloy wheel, LED
lighting, Sensors, ADAS, EV chargers, Sunroof and other premium components. To meet the changing
dynamic of the automotive industry, the company is aggressively expanding its capacity in the various
product categories like Alloywhheel, Lighting, switches, seat belts and smart switches. We expect UNO
Minda to see healthy revenue growth in the coming years backed by increasing KIT value by adding more premium and high growth products, increasing SOB with clients and adding capacity expansion. We reiterate our BUY rating on the stock with a TP of Rs. 1122, (45x of FY26E EPS).

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