Goldman Sachs has reiterated a ‘Buy’ rating on Uno Minda Ltd, assigning a target price of ₹1,260, indicating a 28.6% upside from the current market price of ₹980 (as of latest close).
The brokerage termed Q4 FY25 performance as in line, with revenue and EBITDA beating Goldman Sachs estimates by 1% and flat respectively. Uno Minda’s FY25 revenue growth was 2.2x the OEM industry’s production volume growth, underscoring its outperformance in key segments.
EBITDA grew 11% YoY in Q4, trailing the 20% revenue growth due to startup costs at new greenfield facilities. The company indicated that these costs, which led to an 80 basis points YoY drag on EBITDA margins, should start easing from Q1 FY26.
Goldman expects profitability to improve from Q2–Q3 FY26, setting the stage for modest margin expansion as Uno Minda targets 20% topline growth for the full year FY26E. The brokerage remains positive on the stock’s long-term prospects driven by execution, scalability, and emerging opportunities in the auto components space.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult a financial advisor before making any investment decisions.
