The share price of this leading auto component provider gained around 2 percent to Rs 674.05 per share after the company commissioned a new plant to manufacture automotive seats for passenger cars.
Uno Minda Ltd is a mid-cap stock with a market capitalization of Rs 37,924 crore. while company shares have gained 17 percent in the last six months and 21 percent in the last year.
The Company has commissioned its new automotive seating systems plant under subsidiary Uno Minda TACHI-S Seating Private Limited (“UMTS”) in Bhagapura, Ahmedabad, Gujarat.
The plant will produce mechanical parts for passenger automobile seats. UMTS has already received orders from OEMs and is anticipated to begin delivery in Q4 FY24. According to the company’s filing.
The company earned a 25 percent revenue mix from switches in Q2 FY24, followed by a 23 percent revenue mix from lightning, a 21 percent revenue mix from castings, and an 8 percent revenue mix from the seat business.
Northern India accounts for 38 percent of the company’s sales, followed by 25 percent from the west, 21 percent from the south, and 16 percent from east India.
Switches, Horns, Lightings, Batteries, Filter, Indicator, Bulbs, RVMs, Braking, Shocks & struts, and Accessories are among the 6,500+ SKUs available from the firm. The firm exports products to SAARC, ASEAN, the EU, Latin America, the Middle East, and Africa.
Recently, the business announced a new greenfield factory with a capacity of 120,000 flow-forming GDC alloy wheels per month, with a total capacity of 2.0 million projected for the 2W Alloy wheel plant in Supa.
The company reported strong revenue growth of 26 percent yearly, from Rs 2,877 crore in Q2FY23 to Rs 3,621 crore in Q2FY24. During the same period, the company’s net profit increased by 59 percent from Rs 182 crore to Rs 238 crore.
Uno Minda over the years has diversified across product divisions (Acoustics, Switches, Castings, Lighting, and others), segments (4Ws & 2Ws), and geographies (International & Domestic) and channels (replacement & OEM).
Uno Minda Ltd manufactures and supplies Automotive Solutions and systems to Original Equipment Manufacturers. The Company is a manufacturer of automotive switching systems, automotive lighting systems, automotive acoustics systems, automotive seating systems, and alloy wheels.
At the time of writing this report, Uno Minda shares were trading at Rs 661.40 per share, up 0.14 percent from the previous close price.
Written by Omkar Chitnis
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