Buy Uno Minda; target of Rs 650: ICICI Direct

ICICI Direct's research report on Uno Minda

Uno Minda (erstwhile Minda Industries, MIL) is India’s largest maker of automotive switches, horns, seats & PV alloy wheels and third largest automotive lighting player. FY22 segment mix – 4-W 53%, 2-W 47%; switches, lighting, castings, horns and seats comprised 30%, 21%, 16%, 8% and 11% of sales, respectively • History of vast outperformance vs. user industries riding on growth in kit value, new client and product additions & inorganic acquisitions.

Outlook

We retain BUY rating on the stock amid robust demand outlook in the PV domain, consistent work on increase in content/vehicle and capabilities in developing import substitution products in the EV space. Upgrading our estimates, we now value the company at unchanged target price of Rs 650 i.e. 45x P/E on FY24E EPS of Rs 14.4/share.