Stock of the Week : Uno Minda Ltd for Target Rs. 1440 - GEPL Capital
Uno Minda Ltd
Buy Uno Minda Ltd CMP 1267.9 Target 1440 Stop loss 1175
Investment Rationale
* Innovation-Led Expansion Across Core Segments: Uno Minda is well-positioned for sustained growth, supported by its diversified product portfolio, deep customer relationships, and ongoing investments in emerging technologies. In the Lighting Systems segment, the company is driving innovation with next-generation solutions such as projector headlamps, ambient lighting, and adaptive lighting systems. Meanwhile, the Casting business, spanning alloy wheels for both two-wheelers and four-wheelers as well as aluminium die-casting, is witnessing significant capacity expansion through new investments, reinforcing its growth trajectory.
* Strengthening its EV core through acquisitions and new facilities: Electric Mobility continues to be a key growth driver for Uno Minda. The company has acquired the remaining 49.9% stake in UMEVSPL (FRIWO JV), along with IPRs, the R&D team, and technical know-how for FRIWO’s operations in Germany and Vietnam, significantly strengthening its in-house EV drivetrain capabilities. Additionally, construction has begun on a new greenfield facility for highvoltage EV powertrain components under its JV with Inovance Automotive, with Phase-1 slated for completion by Q2 FY’27.
* Robust CAPEX Plans Backed by Strong Balance Sheet: The company has earmarked Rs.350–400 crore for sustaining CAPEX and Rs.1,300–1,350 crore for growth CAPEX, taking the total planned outlay to Rs.1,650–1,750 crore in FY2026. As of June 2025, debt stood at Rs.2,228 crore, up from Rs.2,091 crore on March 31, 2025, largely driven by expansion-related CAPEX and land acquisitions in Kharkhoda, Hosur, and Bawal to support future capacity. Despite this increase, the net debt-to-equity ratio remains comfortable at 0.34, reflecting a healthy balance sheet position.
* Valuations: We model a Revenue/PAT CAGR of 15%/21% and estimate UNOMINDA to clock PAT of Rs 1,658 Cr by FY28E. UNOMINDA is trading at forward PE(x) of 42.7x and we value at 48.5(x) FY28E and Recommend BUY on UNOMINDA with target Price of Rs. 1440 (14%).
Observation
* On the monthly scale, UNOMINDA continues to maintain a higher top and higher bottom formation, reaffirming its long-term bullish trend.
* On the weekly scale, the stock is trading at lifetime highs, reflecting robust momentum and a well-defined price structure. After a successful retest of the sloping trendline, the stock has resumed its bullish momentum, further strengthening the uptrend.
* The stock is also well-positioned above all its key moving averages, underlining the strength and sustainability of the trend. Momentum indicators support this view, with the MACD in a rising trend, indicating sustained positive momentum.
SEBI Registration number is INH000000081.
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