Buy UNO Minda, target price Rs 650: Emkay Global Financial Services

Emkay Global Financial Services has buy call on UNO Minda with a target price of Rs 650. The current market price of UNO Minda is Rs 564.65. Time period given by analyst is 1 year when UNO Minda's price can reach defined target.

UNO Minda, incorporated in the year 1992, is a Mid Cap company (having a market cap of Rs 32075.15 Crore) operating in Auto Ancillaries sector.

Financials

For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 2892.92 Crore, up 12.79 % from last quarter Total Income of Rs 2564.87 Crore and up 35.50 % from last year same quarter Total Income of Rs 2135.05 Crore. Company has reported net profit after tax of Rs 153.56 Crore in latest quarter.

The company’s top management includes Mr.Nirmal K Minda, Mr.Ravi Mehra, Mr.Anand Kumar Minda, Ms.Paridhi Minda, Mrs.Pravin Tripathi, Mr.Krishan Kumar Jalan, Mr.Rajiv Batra, Mr.Satish Balkrishna Borwankar, Mr.Rakesh Batra. Company has BSR & Co. LLP as its auditors. As on 30-09-2022, the company has a total of 57 Crore shares outstanding.

Investment Rationale
The brokerage expects FY23E revenue growth to be robust at 33%, and the uptrend is likely to sustain, with FY23-25E revenue CAGR at 18%. The various factors that shall drive the rally in the stock include a cyclical upturn in the underlying PV/2W segments; higher content-per-vehicle in core businesses, such as switches, lightings and acoustics; improving presence in alloy wheels, sensors, and seatings; and growing content/vehicle, led by EV penetration.

Promoter/FII Holdings
Promoters held 70.11 per cent stake in the company as of 30-Sep-2022, while FIIs owned 9.06 per cent, DIIs 13.95 per cent.