5,000 per cent multibagger returns: Auto company executes JV agreement with Suzhou lnovance Automotive Co. Ltd & lnovance Automotive (HK) Investment Co. Ltd
The stock is up by 27.2 per cent from its 52-week low of Rs 906 per share and gave multibagger returns of over 5,000 per cent in 10 years.
Uno Minda Limited has approved the Detailed Project Report (DPR) for its 4W-EV project, marking a significant step in its joint venture with Uno Minda Auto Innovations Pvt Ltd., Suzhou Inovance Automotive Co. Ltd., and Inovance Automotive (HK) Investment Co. Ltd. This collaboration, initially announced on February 17, 2025, aims to develop and manufacture high-voltage powertrain products for electric vehicles, including Combined Charging Units, E-Axles, Inverters, and Motors, through a newly formed Joint Venture Company in India. The DPR outlines a total project cost of approximately Rs 423 crore for this ambitious undertaking.
Furthermore, Uno Minda's Board has sanctioned an overall investment of around Rs 114 crore in the equity capital of the JV Company, representing a 70 per cent stake. This investment will be phased over the next three years, with Uno Minda initially holding 100% equity until Inovance Automotive (HK) Investment Co. Ltd. secures the necessary regulatory approvals. Once these approvals are in place, the JV partner will acquire a 30% equity stake. The proposed capacity addition is projected to be 2,03,043 units per year, with the start of production (SOP) targeted for the second quarter of FY 2026-27, and full capacity to be achieved within three years of operation. This strategic move aligns with Uno Minda's business growth objectives within the automotive industry.
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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.
UNO Minda Ltd has a market cap of over Rs 50,000 crore and has delivered good profit growth of 24.7 per cent CAGR over the last 5 years. The stock is up by 27.2 per cent from its 52-week low of Rs 906 per share and gave multibagger returns of over 5,000 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.