Stock Analysis

₹1,020 - That's What Analysts Think Uno Minda Limited (NSE:UNOMINDA) Is Worth After These Results

NSEI:UNOMINDA
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As you might know, Uno Minda Limited (NSE:UNOMINDA) recently reported its quarterly numbers. It was a pretty mixed result, with revenues beating expectations to hit ₹38b. Statutory earnings fell 3.0% short of analyst forecasts, reaching ₹3.46 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Uno Minda

earnings-and-revenue-growth
NSEI:UNOMINDA Earnings and Revenue Growth August 10th 2024

Taking into account the latest results, the most recent consensus for Uno Minda from 18 analysts is for revenues of ₹168.8b in 2025. If met, it would imply a meaningful 14% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 21% to ₹19.14. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹167.5b and earnings per share (EPS) of ₹19.12 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 8.1% to ₹1,020. It looks as though they previously had some doubts over whether the business would live up to their expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Uno Minda analyst has a price target of ₹1,391 per share, while the most pessimistic values it at ₹737. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Uno Minda'shistorical trends, as the 20% annualised revenue growth to the end of 2025 is roughly in line with the 23% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 11% per year. So it's pretty clear that Uno Minda is forecast to grow substantially faster than its industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Uno Minda going out to 2027, and you can see them free on our platform here.

It might also be worth considering whether Uno Minda's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.