SYNOPSIS: Global brokerages Nomura and CLSA reaffirmed bullish views on Uno Minda, raising target prices to Rs. 1,493 and Rs. 1,482, citing strong EV capacity expansion, resilient Q2 performance, and 24 percent projected revenue CAGR for FY26-FY28.
During Monday’s trading session, shares of a global technology leader in automotive components and systems manufacturing surged nearly 8 percent on the stock exchanges, following “Buy” and “Outperform” ratings reaffirmed by global brokerage firms, Nomura and CLSA.
With a market cap of Rs. 75,909.6 crores, shares of Uno Minda Limited closed in the green at Rs. 1,316.9 on BSE, up by around 7 percent, compared to its previous closing price of Rs. 1,229.2.
The stock has delivered positive returns of around 43 percent in one year, and has gained by nearly 8 percent in the last one month.
Brokerage Target & Outlook
Global brokerage firm Nomura has reaffirmed its ‘Buy’ rating on Uno Minda Limited and revised its target price upward to Rs. 1,493 per share from Rs. 1,430 earlier, implying a potential upside of more than 13 percent from its Monday closing level. The brokerage highlighted that the company’s expanding capacity in the electric vehicle (EV) segment remains a key growth driver, reflecting Uno Minda’s increasing market share and strong positioning in the evolving mobility landscape.
Similarly, CLSA has maintained its ‘Outperform’ rating on Uno Minda while raising the target price to Rs. 1,482 per share from Rs. 1,472, indicating a potential upside of nearly 13 percent. The brokerage believes that the reduction in GST rates could act as a demand catalyst for both two-wheelers and passenger vehicles, thereby supporting a stronger revenue trajectory for Uno Minda in the coming quarters.
The upward revisions come on the back of robust Q2 FY26 results, where the company’s operating performance surpassed CLSA’s expectations, delivering an EBITDA margin of 11.5 percent despite the initial expenses related to the launch of new greenfield projects.
Looking ahead, CLSA forecasts a 24 percent revenue CAGR for Uno Minda over FY26-FY28, which is estimated to be about 2.5 times the projected industry growth for two-wheeler and four-wheeler volumes. The firm attributes this optimistic outlook to new product introductions, premiumisation trends, and rising wallet share per customer across product categories.
CLSA’s revised Rs. 1,484 price target is derived from a valuation multiple of 42x December 2027E EPS, underscoring continued confidence in Uno Minda’s long-term growth momentum and operational execution.
Financial Performance:
Uno Minda reported a significant growth in its revenue from operations, showing a year-on-year increase of more than 13 percent from Rs. 4,245 crores in Q2 FY25 to Rs. 4,814 crores in Q2 FY26.
During the same period, its net profit increased from Rs. 266 crores to Rs. 323 crores, representing a rise of more than 21 percent YoY.
Uno Minda Limited is a global technology leader in auto components and systems manufacturing, supplying to leading OEMs in the world. It is engaged in the business of manufacturing and trading of auto components, including lighting, alloy wheels, horns, seating systems, seatbelts, switches, sensors, controllers, handlebar assemblies, wheel covers, etc.
The company designs and manufactures over 28 categories of components and systems for vehicles across all segments (passenger cars, commercial vehicles, 2- and 3-wheelers), catering to both internal combustion engines (ICE) and electric/hybrid vehicles.
Written by Shivani Singh
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