Uno Minda Plunges up to 6% to Record One-Month Low Following Q4 Earnings, Emkay Global Downgrades to 'Reduce

Uno Minda Shares Decline After Earnings Report and Brokerage Downgrade

Shares of auto components maker Uno Minda fell nearly 6 percent on Tuesday to hit a one-month low. The stock declined as much as 5.9 percent to Rs 1,007.50 per share during the session.

The decline in the stock price was attributed to a downgrade in the stock by brokerage firm Emkay Global Financial Services, which cut its target price on the stock by over 19 percent to Rs 1,050 from Rs 1,300 earlier. Emkay Global cited expectations of near-term margin pressure as the reason for the downgrade. The brokerage also lowered its earnings per share estimates for FY27, FY28, and FY29 by 15-16 percent.

According to Emkay Global, the company management did not provide a revenue outlook for the June quarter, but indicated that the impact of commodity inflation and labour costs would be significant during the period. The brokerage now expects the company's revenue to grow at a compounded annual growth rate of 20 percent during FY26-FY28, compared with 24 percent seen over FY22-FY26 earlier.

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In contrast, analysts at Choice Broking marginally revised down their FY27 and FY28 earnings estimates due to near-term margin pressure arising from commodity inflation and supply-side constraints. However, they maintained an 'add' rating on the stock, citing growth visibility from investments in EV powertrain and premium automotive technologies.

Choice Broking noted that growth momentum remained broad-based across key segments, with the switches and lighting businesses reporting record performance driven by domestic demand, export growth, and increasing business share with underpenetrated OEMs. The brokerage also highlighted that the company secured an Android-based infotainment order with annual peak revenue potential of Rs 600 crore and a two-wheeler lighting order with annual peak value of Rs 450 crore.

Uno Minda reported a 22 percent year-on-year rise in consolidated profit after tax to Rs 326 crore for the January-March quarter. The company had posted a profit after tax of Rs 266 crore in the corresponding quarter a year ago. Consolidated revenue from operations rose 18 percent to Rs 5,336 crore in the fourth quarter from Rs 4,528 crore in the year-ago period.

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The company said the growth was driven by value-added features and volume expansion across its core and emerging product segments.