Uno Minda Limited (UNOMINDA.NS) fair value

ACCE thesis

Uno Minda makes switches, sensors, lighting, locks, seating and telematics modules for two- and three-wheelers and four-wheel vehicles, with a growing share of content per vehicle as Indian OEMs add electronics and safety hardware. Its scale in Indian auto components, spread across a broad customer base and many product lines, gives it a durable position as platform volumes shift toward higher-content models. Revenue growth of 23.8% is running well ahead of a mature domestic auto market, and the company is positioned to capture more of that growth through electrification and emissions-driven content upgrades. A 7.1% operating margin against a 34.0% gross margin is thin for the sector, so the debate is whether margins expand as scale and new programmes ramp, which is the key question to test before anything else. At 34.1x forward earnings against a trailing 51.3x, the market is already pricing a sharp earnings recovery, so the case rests on delivery rather than on the multiple alone.