6,000 per cent multibagger returns: This auto components & equipment company to expand capacity with new facilities in Indonesia and India
The stock is up by 91.2 per cent from its 52-week low of Rs 551 per share and gave multibagger returns of over 6,000 per cent in 10 years.
Uno Minda Limited, a global Tier-1 supplier of proprietary automotive systems and solutions to original equipment manufacturers (OEMs), is excited to announce its expansion in Indonesia and India. The company's wholly-owned subsidiary, PT Minda Asean Automotive ("PTMA"), has secured additional orders, including orders for long tail lamps for passenger cars from OEMs in Indonesia. To meet this growing demand, Uno Minda will establish a new manufacturing facility in Indonesia, expected to be operational by Q4 FY26.
Uno Minda has been a significant player in the Indonesian market since 2005 when it established its first manufacturing facility. PTMA currently supplies components and systems to major two-wheeler OEMs in the country. The new plant will enable Uno Minda to diversify its product offerings and cater to the growing demand for passenger car components. Once the new plant is commissioned, the existing plant will also be relocated to the new site to consolidate operations and achieve economies of scale. The total capital expenditure for the new plant is estimated at Rs 210 crore
In addition to its Indonesian expansion, Uno Minda is also expanding its domestic capacities. The Company's one of the key subsidiaries Uno Mindarika Private Ltd (UMRPL) had recently set up a new plant in Farrukhnagar, Gurugram, Haryana. In phase 1 of this new plant, it had set up manufacturing facilities for part products to be used for manufacturing automotive switches. UMRPL will be shifting its existing manufacturing plant from Manesar, Nawada Fatehpur, Haryana to Farrukh Nagar, Haryana in Phase II with an Investment of Rs 120 crore. The phased relocation will be completed by Q3 FY27, ensuring uninterrupted supply to customers and providing flexibility for future growth.
In addition to the above expansion in Indonesia and India, our joint venture company, Toyoda Gosei Minda India Pvt Ltd, through its subsidiary Toyoda Gosei South India Pvt Ltd will be setting up a new plant in Harohalli, Karnataka. This facility will manufacture safety systems (airbags, steering wheels, etc.) and interior and exterior products (console boxes, etc.) to meet the increased demand. The total capital expenditure for this new plant in Harohalli is estimated at Rs 283 crore with operations expected to commence in Q1FY27. These expansions demonstrate Uno Minda's commitment to strengthening its global footprint, serving the growing automotive markets in India, and meeting the evolving needs of its customers.
DSIJ’s 'multibagger Pick’ service recommends well researched multibagger stocks with High Returns potential. If this interests you, do download the service details here.
About the Company
Uno Minda Limited (formerly known as Minda Industries Limited), incepted in 1958, is a leading global Tier-1 manufacturer and supplier of innovative automotive solutions and systems to OEMs. They design and manufacture over 20 categories of components and systems for vehicles across all segments (passenger cars, commercial vehicles, two- and three-wheelers) catering to both internal combustion engines (ICE) and electric/hybrid vehicles. It is one of the leading manufacturers of automotive switching systems, automotive lighting systems, automotive acoustics systems, automotive seating systems and alloy wheels.
It has a leadership position in India in almost all the products it manufactures. Technology and innovation are the two strong pillars of the organisation, based on which it has continued to lead the emerging trends in the automotive sector, over the past few decades. The Group is a global player in the automotive sector with 74 manufacturing facilities in India, Indonesia, Vietnam, Spain, and Mexico, as well as 37 R&D and Engineering Centres in India, Germany, Japan, Taiwan, Korea & Spain. It has 19 JV/Technical Agreements with world-renowned manufacturers from Germany, Korea, China and Japan.
UNO Minda Ltd has a market cap of over Rs 59,000 crore and has delivered good profit growth of 24.7 per cent CAGR over the last 5 years. The stock is up by 91.2 per cent from its 52-week low of Rs 551 per share and gave multibagger returns of over 6,000 per cent in 10 years. Investors should keep an eye on this Large-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.