Uno Minda Share Price Target 2025: 49% Stake In EV Company Flash - Buy, Sell Or hold? See Brokerage Report

Uno Minda Limited a supplier of proprietary automotive solutions and systems has acquired a sizable share in Flash, an EV company.

Brokerage firm Nuvama shared a note on Uno Minda and the state of the company stock in the foreseeable future. 

Minda Acquires Flash : Details

“Minda shall acquire a 49 per cent stake in Flash at INR13.7bn, which implies a valuation of 25x FY26E P/E”, Nuvama Institutional Equities said in a report.

Flash is expected to almost double its profits from Rs 600 million in FY24 to Rs 1.1 billion in FY26. Minda will have a share of Rs 500 million in that profit.

Minda can also benefit from selling its own products to Flash’s customers, like Audi and Porsche, and achieve cost savings by combining similar products and services.

While this deal will be negative in the long run, Minda expects long-term profits. After this acquisition, Minda will take on Rs 9 to 10 Bn in debt, raising the debt-to-equity ratio to 0.6x.

To Buy Or Not To Buy?

Nuvama has given Minda a ‘Buy’ rating, at a price of Rs 568. The 12 month price target stands at Rs 590. It is expected to reach a 52-week high of Rs 653, and low of Rs 366.

Flash's Thriving EV Business

Flash's EV business is thriving, with 20 per cent of its revenue from EVs in H1FY25, a growth of 13 per cent since last year.

The Flash acquisition will help Minda expand its EV market, helping it gain customers.

EV Market In India

As per IBEF, over 50 per cent of 3-wheelers, about 5 per cent of 2-wheelers, and 2 per cent of cars bought in 2024 are EVs​. The Indian EV battery market is projected to surge from US$ 16.77 billion in 2023 to a remarkable US$ 27.70 billion by 2028.​ India is on track to become the largest EV market by 2030, with the rise in investment over the next 8-10 years.

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