Analysis on UNO Minda

UNO Minda Ltd. is a diverse supplier in the automotive ancillary sector, producing items like switches, horns, and lights. It holds a dominant position in the switch market, with a 67% market share. The company has seen consistent growth in content per vehicle, expected to expand its product range further. Notably, its annual order value from Electric Vehicle Original Equipment Manufacturers stands at Rs. 3,292 crore.
In Q2FY24, the company exceeded revenue expectations, achieving a 26% year-on-year growth, driven by new customer acquisitions in the two-wheeler and four-wheeler segments, as well as the introduction of new components and leveraging its existing client base. However, the EBITDA margin was 10.9%, constrained by higher personnel costs and limited operating leverage due to capacity expansion.
Despite these challenges, the company anticipates a revenue CAGR of 17% from FY24E to FY26E, considering factors like demand stability, diversification, and increased content per vehicle. Currently, UNO Minda Ltd. is trading close to its long-term historical average of 36x. Analysts believe the stock will continue to perform well due to its diversified portfolio, strong order backlog, and hence, value UNO Minda Ltd. at 33x FY26E Earnings Per Share .

UNO Minda Partners with Inovance for EV Charging and High-Voltage Products

UNO Minda partners with Suzhou Inovance to produce high-voltage EV components, boosting the Indian EV market presence, shares rose 19%, market cap exceeded Rs.58,000 Cr.

UNO Minda Ltd., a prominent player in the auto industry, has announced a partnership with Suzhou Inovance Automotive Co., a leading Chinese firm, to manufacture high-voltage Electric Vehicle (EV) products, aiming to enhance UNO Minda’s product portfolio for both passenger and commercial EVs in India.

Product Portfolio Expansion

Under this partnership, UNO Minda will produce key EV components, including Charging Control Units (CCU), EV inverters, EV motors, and advanced 3-in-1 electric drive systems (e-Axle). This move is expected to strengthen the company’s presence in the rapidly growing Indian EV market.

Inovance’s Global Presence

Inovance Automotive, a subsidiary of the globally recognized Inovance Group, has a substantial presence across multiple countries, including Germany, France, the UK, and China. The company is renowned for supplying components and systems for both electric and hybrid vehicles to major OEMs worldwide.

Growing Indian EV Market

The partnership aligns with the increasing momentum in India’s EV market, where passenger EV sales nearly doubled in FY24. This growth is anticipated to continue with upcoming vehicle launches and the entry of global OEMs into the market.

Strengthening Local Manufacture

UNO Minda plans to establish a dedicated manufacturing facility in India for the production of these high-voltage EV components. This initiative will not only reduce dependency on imports but also contribute to the Make in India campaign, fostering technological advancements and job creation within the country by working on local manufacturing capabilities.


Nirmal K Minda, Chairman and MD of UNO Minda Group, expressed the company’s commitment to leading the electric vehicle transformation across all vehicle categories. The partnership with Inovance is seen as a pivotal step towards achieving this goal by leveraging Inovance’s expertise in integrated electric drive units.

Market Impact

Following the announcement, UNO Minda’s shares surged by 19%, reaching a 52-week high of Rs.1,025 on the NSE. The company’s market capitalization exceeded Rs.58,000 crore, reflecting positive market sentiment.


UNO Minda’s collaboration with Inovance signifies a significant step in the company’s efforts to support India’s transition to sustainable and electrified transportation solutions along with its expansion plans.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.