Uno Minda (UNOMINDA)

FairStock Score: 45/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Strong growth record: 5-year revenue CAGR of 21.35% and latest sales growth of 20.58%.
• Efficient capital use: ROE of 19.86% and ROCE of 18.83%.
• Sound financial health: Debt/Equity of 0.46 and Altman Z-Score of 6.21 indicate low distress risk.
• High promoter conviction: promoter holding at 68.41% aligns interests.
• Healthy operating signals: Piotroski F-Score of 8/9 reflects strong fundamentals.

Concerns

• Expensive valuation: P/E of 59.28, P/B of 11.39, EV/EBITDA of 103.65, and PEG of 9.18 leave little room for error.
• No margin of safety: Graham Number of ₹210.47 versus price of ₹1,130.10 implies a margin of safety of -464.68%.
• Negative free cash flow of ₹-408 Cr despite reported profits; growth is consuming cash.
• Profit growth of 16.71% lags revenue growth of 20.58%, and dividend yield is negligible at 0.19%.

AI Analysis

When I look at Uno Minda, I see a high-quality compounding auto-component franchise, but paying ₹1,130 for it tests every Graham discipline I have. The business scores well: ROE of 19.86% and ROCE of 18.83% are respectable; debt-equity is just 0.46; promoter holding is high at 68.41%; Altman Z of 6.21 suggests financial robustness; Piotroski F-score of 8/9 shows a healthy recent operating position. Growth is real: 5-year revenue CAGR of 21.35%, latest sales growth of 20.58%, and a strong quarter with sales of ₹5,018 Cr and net profit of ₹300 Cr. This is a Fast Grower in terms of revenue momentum. But Graham taught me that price is what I pay and value is what I get. At P/E 59.28, P/B 11.39, EV/EBITDA 103.65, and PEG 9.18, the market is paying for decades of perfection. Profit growth of 16.71% trails revenue growth, and free cash flow is negative at ₹-408 Cr—growth is consuming cash, not yet throwing it off. The dividend yield is a token 0.19%. Graham's number says intrinsic support is around ₹210.47; at ₹1,130.10, the indicated margin of safety is minus 464.68%. That is not safety; that is hope. I'd rather miss a rally than violate my margin of safety. Uno Minda deserves a place on my watchlist, not in my portfolio at this price. I need evidence that this enormous multiple can be justified through higher free cash flow conversion and many years of 20%+ execution. Until then, the margin of safety is the deciding factor, and it's missing.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer