Buy UNO Minda; target of Rs 1162: Deven Choksey

Deven Choksey is bullish on UNO Minda has recommended buy rating on the stock with a target price of Rs 1162 in its research report dated May 26, 2025.

Broker Research

May 27, 2025 / 10:52 IST

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Deven Choksey's research report on UNO Minda

Uno Minda reported an operating revenue of INR 45,283 Mn., up 19.4% YoY (+8.2% QoQ), in line with our estimates. EBITDA stood at INR 5,267 Mn., up 11.1% YoY (+15.3% QoQ), largely in line with our estimates (+1.9%). EBITDA margin came in at 11.6%, down by 86bps YoY (+71bps QoQ) led by sharp increase in employee benefit expenses. Net profit stood at INR 2,662 Mn., down by 7.9% YoY (+14.5% QoQ), below our estimates (-7.0%) driven by higher tax outgo. • We have revised our FY26E/FY27E EPS estimates by +1.1%/+1.3% respectively, reflecting strong traction in core segments like switches, castings, and seating, improvement in operating leverage led by ramp-up of capacities, and improving visibility in premium EV-led product lines. We believe that the Company will witness higher revenue growth and improve margins on the back of stronger domestic OEM demand and recent project wins. We forecast Revenue/ EBITDA/ Adjusted net profit to grow at an CAGR of 23.1%/27.7%/38.7% over FY25-FY27E. The stock currently trades at 43.6x / 32.1x FY26E/FY27E EPS.

Outlook

We value Uno Minda at 37.0x FY27E EPS (i.e., near to its 10-year NTM P/E Avg.), implying a target price of INR 1,162. We maintain a our “BUY” rating on stock.

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