5,300 per cent multibagger returns: Auto company to Set Up two-wheeler Alloy Wheel facility in Bawal, Haryana
The stock is up by 34 per cent from its 52-week low of Rs 714.65 per share and has given multibagger returns of over 5,300 per cent in 10 years.
Uno Minda Limited, a leading global supplier of advanced automotive technology and systems to original equipment manufacturers (OEMs), has announced that announced that its Board of Directors has approved the setting up of a manufacturing facility for two-wheeler alloy wheels in Bawal, Haryana. This facility will have an installed production capacity of approximately 1.5 million alloy wheels annually, aimed at catering to recently secured orders and rising market demand. The project entails a total capital expenditure of around Rs 200 crore, which will be financed through a combination of debt and internal accruals. The facility is expected to commence operations by the second quarter of FY27.
In parallel, the Company has also commenced commercial production of the expansion project of an additional 2.0 million alloy wheels at Supa, Maharashtra. This expansion was originally announced in May 2024. Uno Minda first entered the two-wheeler alloy wheel segment in FY 21, with a greenfield facility in Supa, Maharashtra, with an initial capacity of 4.0 million wheels. Since then, the company has almost doubled its production capacity at Supa to 8.0 million units. Through consistent investment and focus on localisation, Uno Minda has significantly contributed to reducing India's dependence on imported two-wheeler alloy wheels in support of the Government's Make in India initiative. Upon completion of the Bawa I facility, Uno Minda's total installed capacity for two-wheeler alloy wheels will rise to approximately 9.5 million wheels per annum, reinforcing its position as a key player in the segment.
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
Established in 1958, Uno Minda Limited is a leading global manufacturer and supplier of advanced automotive technology and systems for various vehicle segments, including ICE and electric/hybrid. The company holds leadership positions in automotive switching, lighting, acoustics, seating, and alloy wheels, driven by a strong focus on technology and innovation for over six decades. With a global presence encompassing 74 manufacturing facilities and 37 R&D centres across multiple countries, along with 19 joint ventures and technical agreements, Uno Minda demonstrates its significant reach and collaborative approach in the automotive sector.
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 34 per cent from its 52-week low of Rs 714.65 per share and has given multibagger returns of over 5,300 per cent in 10 years.
Disclaimer: The article is for informational purposes only and not investment advice.