Emkay Raises Uno Minda Share Price Target by 5% — Should You Buy, Sell, or Hold the Auto Component Stock?

The shares of auto component maker Uno Minda Ltd rose 2.38 per cent after its reported consolidated net profit fell in the fourth quarter of financial year 2025 in line with analysts' estimates.

In a note, brokerage firm Emkay wrote, "Uno Minda reported a healthy quarter, with revenue up 21 per cent YoY (in line with consensus) and driven by a strong double-digit growth across business segments."

Further it said, "We raise FY26E/27E EPS by ~4%/6% to factor in the sustained outperformance vs the underlying industry; maintain ADD; we revise up TP by 5% to Rs1,050 at 38x FY27E PER."

As per an exchange filing, the company posted a profit of Rs 266 crore in the March quarter.

The revenue up 19.3 per cent to Rs 4,528 crore versus Rs 3,794 crore, earnings before interest, taxes, depreciation, and amortization (EBITDA) up 11 per cent to Rs 527 crore compared to Rs 474 crore in the corresponding period last year. The margin stood at 11.6 per cent compared to 12.5 per cent in the same period last year. However, the net profit down 7.6 per cent to Rs 266 crore versus Rs 288 crore.

Dividend Recommendation

After posting the fourth quarter results, the board of the company recommended a final dividend of Rs 1.5 per share for fiscal 2025. This recommendation is subject to the approval of the shareholders at the ensuing annual general meeting of the company. The record date for determining the eligibility of members entitled to receive dividend on equity shares is May 30. The dividend, if declared, shall be paid within the stipulated timelines, according to the company.

The company's board has approved a fundraising of up to Rs 2,500 crore on a private placement basis. Additionally, the company also announced plans to shift 2W lighting manufacturing plants from Bahadurgarh and Sonipat to Kharkhoda, Haryana.

As of 2:55 pm on Thursday, May 22, 2025, the shares of Uno Minda were trading 2.07 per cent higher at Rs 1,021.00 apiece.