Market leader stock in focus after it aims to achieve 11% profit margin by FY26

A leading player in the automotive sector, this market leader is drawing attention with its strong focus on achieving high-margin growth by FY26. With a clear strategy to expand its footprint in high-growth segments like electric vehicles, the company aims to drive profitability and maintain a competitive edge in the industry. Investors are closely monitoring its progress as it positions itself for long-term success.

Price Movement

During Wednesday’s trading session, shares of Uno Minda Ltd reached an intra-day high of Rs.865.90 per share, rising 5.5 percent from its previous close of Rs.855.40 per share. However, the stock declined later to Rs.851.15 each. Over the past five years, the stock has delivered over 430 percent returns.

Future Outlook

UNO MINDA aims to achieve a margin of 11 percent, with a slight variation of +/- 50 basis points, by FY26. With 89 percent of its revenue coming from the domestic market, the company expects tariffs to have minimal impact on its operations. It remains positive about the growth of domestic auto volumes in the next 2-3 years, reflecting confidence in the sector’s performance. The company is experiencing impressive growth in the electric vehicle (EV) segment, expanding at twice the rate of the industry. UNO MINDA plans to maintain this momentum and continue outperforming its competitors, positioning itself as a key player in the rapidly growing EV market.

Recent Developments

In recent developments, UNO MINDA has successfully commissioned its technically advanced 4W lighting manufacturing facility in Khed city during Q3, enhancing its production capabilities. The company has also received approval from the National Company Law Tribunal (NCLT) for the merger of Minda Kosei, Kosei Minda, and Kosei Minda Mould into UNO MINDA. Additionally, the Board has sanctioned capital expenditure for the expansion of its casting facility at Hosur, increasing its capacity from 11,000 MT per year to 15,000 MT per year, further strengthening its manufacturing capabilities.

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Earnings Report

Uno Minda Ltd reported impressive consolidated revenue of Rs.4,184 crores in Q3 FY25, reflecting an 18.76 percent increase from Rs.3,523 crores in Q3 FY24. Additionally, the company experienced a significant rise in net profit to Rs.254 crores, showing a 23.90 percent growth from Rs.205 crores in the same period last year.

Segmental Break-Up

In Q3 FY25, the company’s revenue distribution across various segments was as follows: Switches accounted for 25 percent, Lighting contributed 24 percent, Casting made up 18 percent, Seatings represented 7 percent, Acoustics stood at 4 percent, and Other segments contributed 22 percent. This diversified portfolio highlights the company’s strong presence across multiple automotive component categories.

Business Overview

UNO MINDA operates as a Tier-1 supplier to Original Equipment Manufacturers (OEMs) across a variety of vehicle segments, including passenger cars, commercial vehicles, and two- and three-wheelers. The company offers a diverse product portfolio, which includes automotive switching systems, lighting systems, acoustics systems, seating systems, and alloy wheels. In terms of market leadership, UNO MINDA is the largest manufacturer of horns in India and the second-largest globally. The company is also the third-largest player in automotive lighting in India and holds a significant market share in the alloy wheels segment, reinforcing its strong position in the automotive industry.

Written by – Siddesh S Raskar

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