Shares of this EV stock under the ‘mid-cap’ category jumped 3 percent in Tuesday’s trading session after the company signed a License Agreement for the supply of AC chargers. In the past six months, the company’s stock gained nearly 15 percent for its holders.
With a market capitalization of Rs 38,348.63 crores, the stocks of Uno Minda Limited started their trading session on Tuesday at Rs 666.60 and closed the session at Rs 668.05, gaining approximately 3 percent as compared to the previous closing levels of Rs 648.55 apiece.
Such bullish movements in the company’s share price were observed after the company, through a recent regulatory filing with the Bombay Stock Exchange (BSE), announced that it has signed a Technical License Agreement (TLA) with “Starcharge Energy Pte. Limited” for manufacturing and selling Electric Vehicle Supply Equipments (EVSE) in India.
The EVSE comprises wall-mounted ‘AC chargers’ mainly designed for convenient home charging. With the abovementioned partnership, Uno Minda further builds up on its EV-specific product portfolio for the passenger car market.
“Uno Minda is proud to announce the expansion of its electric vehicle (EV) portfolio into the passenger car segment through this strategic partnership with StarCharge, a global leader in EV charging solutions.”, commented Mr. Nirmal K Minda, CMD, Uno Minda Group.
StarCharge is a global leader in EV charging infrastructure, microgrid solutions, and operates in 67 countries with manufacturing facilities present in the USA, China, and Vietnam.
During the recent financial quarters, the company’s prime indicators of business, such as its operating revenues as well as after-tax profits, showed underperforming results with the former reducing from Rs 3,621 crores during Q2FY24 to Rs 3,523 crores during Q3FY24, and the latter, during the same period, dipping from Rs 238 crores to Rs 205 crores.
As per the recent presentations, the company provided key business updates, viz, a surge in EV registrations and sales, focusing on domestic EV manufacturing under the ‘PLI’ scheme. Moreover, the strategic business updates include land acquisitions, mergers, and capacity expansions.
For the coming period, the company focuses on improving its EBITDA margins to around 11 percent and working towards sustained growth & profitability. In addition, the company isemphasizing on serving the export markets, particularly in alloy wheels, with plans for dedicated export capacity.
Founded in 1958, Uno Minda Limited is engaged in the business of manufacturing and selling auto components and systems within and outside India. The company’s product portfolio includes automotive switches, sensors, controllers, telematics & connected solutions, etc. The company provides its products for 2/3/4 wheelers, EVs, off-road & commercial vehicles.
Written by Amit Madnani
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