Uno Minda stock has over 9,100% of long-term shareholders in 10 years

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Uno Minda stock has over 9,100% of long-term shareholders in 10 years

The shares of Uno Minda Limited have returned over 9,100 per cent of its long-term shareholders in the last 10 years. The stock is currently trading around Rs 450 right now, after trading around Rs 5 in 2013. The multibagger stock is down 38 per cent from its 52 week high of Rs 604, which was hit on September 9, 2022.

Kotak Institutional Equities upgraded Uno Minda to 'Buy' from 'Add in its recent report, as valuations have become more palatable due to the stock price correction of 15% in the past one month.

The brokerage firm believes that the near-term outlook for the auto industry remains bleak despite the fact that there are several headwinds and that the company's medium-term growth prospects are impacted by an increase in content due to premiumization and the addition of newer products and order win across product segments, which has resulted in market share gains.

Kotak believes that the near term will remain challenging for Uno Minda because of weaker demand trends in both 2 wheeler and passenger vehicle segments. The brokerage expects a recovery in domestic 2 W segment volumes to be muted because of the increased cost of ownership due to OBD 2 norms and weak rural demand. With Uno Minda having the operational control of Kosei Minda Aluminium, we expect the profitability of the JV to improve significantly, due to a reduction in overhead costs and higher utilization levels. It added that we remain optimistic about the growth prospects for the alloy wheel industry, which will be driven by import substitution and increased penetration levels in the PV segment.

The acquisition of an 81.69 stake in Kosei Minda Aluminum Company Private Limited and a 49.90% stake in Kosei Minda Mould Private Limited is a joint venture partner of Kosei, Japan Kosei. The acquisition is planned through a swap of shares with Uno Minda Ltd. The enterprise value of KMA and KMM considered for the purpose of the transaction is Rs 60 crore and Rs 11 crore respectively.

Uno Minda Limited, formerly Minda Industries Limited, is a global supplier of proprietary automotive solutions and systems to OEMs as Tier 1 It was started in 1958 and is one of the first to be inaugurated in 1958.

The manufacturers of automotive switching systems, automotive lighting systems, and others, have a wide range of products and services.

Automotive acoustics systems, automotive seating systems and alloy wheels are in India.

The company produces and supplies over 20 categories of automotive components to leading Indian and international OEMs based in India, Asia, South and North America and Europe.