By UNO Minda’s share price has experienced a remarkable surge this year, gaining around 70% since the start of 2024. This impressive run has continued into August, with the stock rising by approximately 11% this month alone. The auto ancillary company, known for its production of a wide range of automotive components, has caught the attention of investors due to several significant developments in recent weeks.
The company recently announced the appointment of Ramesh KS as the CEO for its ECS-2 domain, effective from August 17, 2024. Ramesh will report directly to Nirmal Kumar Minda, the Chairman and Managing Director of UNO Minda Group.
Ramesh brings with him a wealth of experience from his previous role as Senior Vice President at Ather Energy, a leading player in the electric vehicle (EV) space. His appointment is seen as a strategic move by UNO Minda to strengthen its leadership team as the company continues to expand its presence in the automotive components sector, particularly in the rapidly growing EV market.
In addition to this key leadership appointment, UNO Minda also reported a strong financial performance for the first quarter of the financial year 2024-25. The company posted a consolidated profit after tax of ₹210.8 crore, representing a 17% increase compared to ₹180.17 crore in the same quarter of the previous fiscal year.
Consolidated income from operations for the quarter stood at ₹3,817.51 crore, up from ₹3,092.66 crore in the corresponding period last year. This robust growth in both profit and revenue underscores the company’s strong operational performance and its ability to capitalize on favorable market conditions.
UNO Minda’s strong financial results have been supported by its ongoing efforts to diversify its product offerings and enter new markets. The company recently received board approval for a significant investment of ₹62.69 crore to establish a greenfield sunroof manufacturing plant in Bawal. This new facility is expected to begin commercial production by the fourth quarter of FY27, further enhancing UNO Minda’s capabilities and product portfolio.
The company’s commitment to innovation and expansion has not gone unnoticed by market analysts. Elara Capital recently reaffirmed its ‘Buy‘ rating on UNO Minda’s stock and raised the target price to ₹1,200 from ₹1,168. The report highlighted the company’s consistent outperformance in the two-wheeler (2W) and passenger vehicle (PV) production segments, with Q1 revenue growth of 23%, compared to PV production growth of 6% and 2W growth of 20%.
The report also noted UNO Minda’s recent technical licensing agreements with Inovance for high-value EV components and AISIN for sunroofs, which demonstrate the company’s focus on diversifying into new, high-growth areas such as electric vehicles and powertrain-agnostic products.
On the trading front, UNO Minda’s share price opened at an intraday high of ₹1,163.05 per share on the BSE. According to Ruchit Jain, Lead Research Analyst at 5paisa, the stock appears to have resumed its uptrend following a recent corrective phase.
The RSI oscillator indicates positive momentum, suggesting that the outlook for the stock remains strong. Jain identified immediate support for the stock around the 40-day Exponential Moving Average (DEMA) at ₹1,025, with the potential for a rally towards ₹1,290 in the near term.
Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, echoed this optimistic sentiment, noting that every dip in the stock price has been met with buying interest, indicating strong investor confidence. Bhosale identified the next resistance level at ₹1,250, with support at ₹1,110, suggesting that the stock could continue its upward trajectory in the coming weeks.
UNO Minda’s impressive performance in the stock market this year reflects the company’s strategic focus on innovation, expansion, and leadership. As the company continues to execute its growth plans, particularly in the EV sector, it is likely to remain a key player in the automotive components industry, attracting the attention of investors and analysts alike.
With strong financial results, strategic investments, and a robust leadership team in place, UNO Minda appears well-positioned to capitalize on the opportunities ahead, making it a stock to watch in the coming months.
