ICICI Direct rates Uno Minda Ltd Buy
ICICI Securities maintains BUY on Uno Minda, implying 17% upside, valuing the stock at 40x FY29E EPS.
By ScoutQuest · · 1 min read
From the report
The figures below are as printed in the report by ICICI Direct.
- Rating
- Buy
- Valuation
- 40x · P/E · FY29E
- Report
- result update
- Horizon
- 12 months
Catalysts
The broker's points, summarised.
- Execution of large capacity expansion pipeline (~₹5,200–5,300 crore, 16 projects)
- Near-term margin recovery / restoration of EBITDA margins
- Market share gains and higher content per vehicle
- New orders for advanced pixel-based lighting from global PV OEM
- Two-wheeler alloy wheel capacity expansion
Risks
The broker's points, summarised.
- Negative surprise on margins amidst volatile RM prices
- Domestic auto industry slowdown impacting growth given the company is OEM heavy
Analysts: Shashank Kanodia, CFA, Bhavish Doshi
Revenue growth far outpaces industry production
Uno Minda's Q2FY27 consolidated revenue rose 38% YoY to ₹6,655 crore, against roughly 18% growth in overall automotive production. ICICI Direct attributes the gap to share gains, higher content per vehicle and value-added features across two-wheelers and passenger vehicles.
Product mix moves toward higher-value segments
The company is expanding beyond conventional components into pixel-based lighting, sunroofs, sensors, ADAS, EV powertrain and automotive electronics. FY26 sales split 48% four-wheelers and 42% two-wheelers.
Capacity pipeline of ₹5,200–5,300 crore under execution
Sixteen projects are running or ramping up across alloy wheels, aluminium die casting, sunroof and EV businesses. Two-wheeler alloy wheel capacity has risen from 8 million to 9 million wheels a year and is expected to reach about 11.8 million, a near 50% increase.
Margin guidance retained at 11% plus or minus 50 bps
Management held its full-year EBITDA margin guidance despite higher commodity prices, citing pass-through arrangements and operating leverage. Q2FY27 EBITDA was ₹733 crore at an 11.0% margin versus 10.3% in Q1FY27, with PAT of ₹420 crore.
ICICI Direct's call
ICICI Direct maintains its BUY rating on Uno Minda. The broker's positive view rests on strong domestic OEM volume growth, the company's competitive positioning, its diversified portfolio and industry-leading capex, which it expects to drive revenue growth of about 19.2% CAGR over FY26-29E and an EBITDA margin recovery toward 11.5% by FY29E. The valuation is based on 40x P/E on FY29E EPS.
Also from UNO Minda
Q2 FY27 earnings call: highest ever quarterly revenue and profit, H2 FY27 momentum seen continuing
11 Nov 2026
Uno Minda to meet investors on November 16, 2026 at Avendus Spark INDX Annual Investor Conference
11 Nov 2026
Viewer holding Uno Minda in gains asked whether to book profit; analyst said no harm in booking profits as stock under review
9 Nov 2026
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