UNO Minda Ltd. share price target

We recommend a BUY on the stock with a target price of Rs 900/share, implying an upside of 10% from the CMP.

We maintain our BUY rating on the stock.

• In Q3FY25,UNO MINDA reported an operating revenue of INR 41,840 Mn, a growth of 18.8% YoY (-1.4% QoQ), missing our estimate by 2.4%.
• Q3FY25 EBITDA was INR 4,570 Mn, up 20.4% YoY (-5.3% QoQ), underperforming our estimate, primarily due to negative operating leverage. EBITDA margin was at 10.9%, up by 15bps YoY (-44bps QoQ).

Uno Minda posted healthy Q2 results with outperformance vs MSIL accelerating further and logging a ~6% beat on consolidated EBITDA.

We maintain our BUY rating on the stock.

In Q2FY25, UNO MINDA reported a highest ever quarterly operating revenue of INR 42,448 Mn, a growth of 17.2% YoY (+11.2% QoQ), which is largely in line with our estimates (+1.5%).
The gross margin was at 35.1%, increased by 76 bps YoY (-42 bps QoQ).

In Q1FY25, UNO Minda reported an operating revenue of INR 38,175 Mn, a growth of 23.4% YoY/ (+0.7% QoQ), largely in line with our estimate (+1.3%).
Q1FY25 EBITDA was INR 4,077 Mn, up 23.5% YoY/ (-14.0% QoQ), missed our estimates, primarily due to higher than estimated other expenses and employee cost.

We maintain our BUY rating on the stock.

In Q4FY24, UNO MINDA reported operating revenue of INR 37,940 Mn, a growth of 31.3% YoY and 7.7% QoQ, in-line with our estimates. Revenue for FY24 grew by 24.9% YoY to INR 140,309 Mn.

We maintain our BUY rating on the stock.

Uno Minda Ltd. (UML) was established in 1985, serves as a key provider of automotive solutions and systems for Original Equipment Manufacturers, marking its significant presence in the automotive industry's supply chain for over 60 years through innovative product offerings. The company stands out as a top-tier producer in several domains, including automotive switching systems, automotive lighting systems, automotive acoustics systems, automotive seating systems, and alloy wheels.

UNOMINDA’s revenue was INR 35,229 Mn, a growth of 20.8% YoY (-2.7% QoQ) and remained strong compared to growth of 23.6% YoY seen in H1FY24. Growth was driven by the expansion of capacities and capabilities, market share expansion across various segments, comprehensive solutions offered leading to enhanced kit value, and focus on exports.

Focus on capacity expansion along with strong execution capability, we maintain our BUY rating on the stock.

UNOMINDA’s revenue for Q2FY24 was at INR 36,213 Mn, reporting a growth of 25.9% YoY/ 17.1% QoQ, despite flat YoY production volumes for the auto industry. Growth was on account of the continued expansion of capacities and capabilities along with gaining market share and increasing the value.