IIFL Securities's Stock Pick Today: Buy Uno Minda with Target Rs 910

IIFL Securities maintains a positive outlook on Uno Minda, recommending a buy call with a target price of Rs 910. This represents a potential upside of around 4.9% from the current market price of Rs 867.5. The brokerage firm's bullish stance on Uno Minda is driven by expectations of strong revenue growth, margin expansion, and robust demand in the automotive sector.

About Uno Minda:

Uno Minda is an Indian multinational automotive component manufacturer and supplier headquartered in Jamshedpur, Jharkhand. Established in 1985, it is a joint venture between Minda Industries (India) and Sumitomo Wiring Systems (Japan). Uno Minda manufactures a range of products including switches, lighting systems, horns, controllers, sensors, and wiring harnesses for two-wheelers, passenger vehicles, and commercial vehicles. It has manufacturing facilities in India, Indonesia, Vietnam, Thailand, and Mexico, and supplies its products to major global automakers. Uno Minda is known for its focus on innovation, quality, and customer satisfaction.

52 Week Price Trend:

Uno Minda (NS:UNOMINDA), a leading automotive component manufacturer in India, has witnessed a significant appreciation in its share price, currently trading at Rs 867.5. The stock has gained momentum over the past year, with its 52-week high at Rs 726.85 and a 52-week low of Rs 433. Uno Minda's strong performance is attributed to its focus on innovation, customer-centric approach, and a wide product portfolio catering to the automotive industry's growing demand. The company's strategic initiatives, including acquisitions and partnerships, have also contributed to its growth trajectory.

Stratzy's MOST Analysis:

UNOMINDA has been rated AA- by Stratzy's MOST framework. This framework assesses four key pillars: Management, Outlook, Safety, and Trend. The AA- rating indicates that UNOMINDA has medium fundamental risks in these areas. The company's management is considered to be effective, the outlook for the company is positive, the company's financial position is sound, and the trend in the company's performance is favorable.

Company's Fundamentals:

Uno Minda (NSE: UNOMINDA) is a leading manufacturer of automotive components in India. Its stock is currently trading at a price-to-earnings ratio (PE) of 48.55, indicating that investors are willing to pay 48.55 times the company's annual earnings for each share. The price-to-book ratio (PB) of 8.45 suggests that the company's market value is 8.45 times its book value, which is the value of its assets minus its liabilities. Finally, the dividend yield of 0.23% indicates that investors can expect to receive an annual dividend of 0.23% of the current share price. These ratios provide insights into the company's valuation, earnings potential, and dividend-paying capacity.

Fundamental and Technical information provided in this blog were last updated on 29 May, 2024

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