Shares of auto components maker Uno Minda fell nearly 6% on Tuesday to hit a one-month low after the company reported its March quarter earnings. According to reports from Informist, the stock declined as much as 5.9% to ₹1,075 per share during the session. The downward movement was primarily driven by brokerage firm Emkay Global Financial Services, which downgraded the stock to 'reduce' from 'add' following the quarterly results. At 1130 IST, Uno Minda was down almost 2% at ₹1,047 on the NSE with over 1.4 million shares exchanged hands, slightly higher than 1 million shares traded till the same time Monday.
As reported by Informist, Emkay Global cut its target price on the stock by over 19% to ₹1,050 from ₹1,300 earlier, citing expectations of near-term margin pressure. The brokerage also lowered its earnings per share estimates for FY27, FY28 and FY29 by 15-16%. It now expects the company's revenue to grow at a compounded annual growth rate of 20% during FY26-FY28, compared with 24% seen over FY22-FY26 earlier. According to the brokerage, the company management did not provide a revenue outlook for the June quarter but indicated that the impact of commodity inflation and labour costs would be significant during the period.
According to reports from Informist, analysts at Choice Broking said they had marginally revised down their FY27 and FY28 earnings estimates due to near-term margin pressure arising from commodity inflation and supply-side constraints. However, the brokerage reduced its target price by only 6% to ₹1,240 while maintaining an 'add' rating on the stock, citing growth visibility from investments in EV powertrain and premium automotive technologies. Choice Broking noted that growth momentum remained broad-based across key segments, with the switches and lighting businesses reporting record performance driven by domestic demand, export growth and increasing business share with underpenetrated OEMs.
According to the company's earnings announcement, Uno Minda reported a 22% year-on-year rise in consolidated profit after tax to ₹326 crore for the January-March quarter. As reported by Informist, the company had posted a profit after tax of ₹266 crore in the corresponding quarter a year ago. Consolidated revenue from operations rose 18% to ₹5,336 crore in the fourth quarter from ₹4,528 crore in the year-ago period. The company said the growth was driven by value-added features and volume expansion across its core and emerging product segments.
According to Informist, the brokerage also noted that the company secured an Android-based infotainment order with annual peak revenue potential of ₹600 crore and a two-wheeler lighting order with annual peak value of ₹450 crore. The company closed FY26 with a robust 17% top-line growth, reaching a normalised revenue milestone of ₹19,589 crore, accompanied by an impressive 24% expansion in normalised PAT. Despite the near-term challenges highlighted by brokerages, the company's strong financial performance and strategic wins in emerging segments provide a positive foundation for future growth.
