Uno Minda rallies 12% to hit a 52-week high, here’s why

The stock has gained 82% in the past year and over 64% in the last six months. Shares of the automotive company have been on a gaining spree recently, rising in six of the last seven sessions. The stock has gained over 7% during this period since June 11.

Experts believe that the key catalysts for Uno Minda’s growth are upcoming capacity in alloy wheels, lighting, electric powertrain and motor supply. The company serves the automotive industry as an Original Equipment Manufacturer (OEM). Uno Minda’s product portfolio includes automotive switching systems, auto lighting systems, automotive acoustics systems, automotive seating systems and alloy wheels.

Uno Minda currently holds over 50% share in the auto-switches market, nearly 40% share in four wheeler alloy wheels and less than 25% market share in lighting and seating components, according to reports. The company is also likely to benefit from the adoption of electric vehicles as it manufactures electric drive train components.

Earlier on June 6, Uno Minda informed the exchanges that it had inked a Technical License Agreement with Suzhou lnovance Automotive Company Limited for the development and manufacturing of High Voltage-Category of electric vehicle components for personal vehicles and commercial vehicles. The products developed and manufactured under the agreement include parts of the electric drivetrain such as Combined Charging Units (CCUs), E Axle, Inverters and Motors.

According to reports, the component manufacturer has diversified its product portfolio. The company launched a new line of cabin air filters on June 19. With air pollution becoming increasingly rampant, the launch is aimed at purifying the air inside four-wheelers. Cabin air filters are installed within the vehicle's air conditioning system and work by filtering out harmful particles, allergens, dust, and unpleasant smells.

Shares of Uno Minda closed 2.29% higher at ₹1,079.9 apiece on the NSE.