UNOMINDA

’s Slide Masks Core Strengths

shares have corrected 22% in 2026, now trading at 30x FY28E P/E—in line with peers such as Sona BLW Precision Forgings and Bharat Forge. The decline reflects investor concerns around export-linked risks amid geopolitical tensions, though the company’s direct export exposure is limited. Analysts argue that Uno’s premium valuations are supported by its ability to consistently outgrow the auto industry and its diversified product portfolio. Why the Stock Fell - Geopolitical backdrop: The US–Israel–Iran war has disrupted shipping routes through the Strait of Hormuz, raising freight and insurance costs. - OEM dependence: Uno derives >90% of revenue from OEMs, unlike tyre companies that rely heavily on replacement demand. - Passenger car exposure: ~48% of revenue in 9MFY26 came from passenger cars, with Maruti Suzuki and Hyundai as key customers. - Concerns stem from OEMs delaying shipments to West Asia and North Africa. Impact Assessment - Maruti’s exports: 18% of 9MFY26 volumes, but West Asia accounts for only 12.5% of exports (~2% of total sales). - North Africa exposure is minimal given Maruti’s diversified global base. - Thus, the potential hit to Uno’s volumes appears limited compared to investor fears. Core Strengths - Faster growth than industry: - Passenger vehicles expected to grow 8% in FY26; two-wheelers 7%. - Uno Minda revenue growth projected at 18% (Nomura). - Diversified portfolio: - Switches, lighting, acoustics, castings, seatings. - No single segment contributes more than 25% of revenue, reducing concentration risk. Valuation & Outlook - At 30x FY28E P/E, valuations are aligned with peers. - Near-term risks: OEM export delays and geopolitical volatility. - Long-term drivers: faster-than-industry growth, diversified product mix, and strong OEM relationships. - The correction may have priced in short-term risks, leaving scope for recovery as demand stabilizes.