Uno Minda, a global Tier-1 supplier of proprietary automotive systems and solutions to original equipment manufacturers, witnessed a 4.6% surge in its shares in today’s early trading, reaching ₹679 per share. This uptick follows the company’s recent announcement of a strategic partnership.
According to a regulatory filing made by the company on Friday, Uno Minda has entered into a Technical License Agreement (TLA) with Starcharge Energy Pte. Ltd (StarCharge) for the manufacturing and sale of electric vehicle supply equipment (EVSE) in India.
“The EVSE comprises of wall-mounted AC chargers designed for convenient home charging. These chargers are usually sold along with electric vehicles to customers by OEMs to provide ease of charging at home. With this partnership, Uno Minda further builds up on its EV-specific product portfolio for the passenger car market,” the company said.
With the surge in demand for electric vehicles, efficient and reliable EV charging solutions are becoming increasingly essential. Currently, limited public charging infrastructure poses a challenge to EV adoption, with issues such as cost, speed, and waiting times at public charging stations being notable concerns.
As a result, a significant portion of EV charging demand globally is met through home or workplace charging, rather than publicly accessible chargers, as highlighted by the International Energy Agency. Uno Minda, in partnership with Starcharge, aims to revolutionize home charging solutions, contributing to faster and cleaner mobility adoption in India, as highlighted by the company in its regulatory filing.
Uno Minda manufactures and supplies over 20 categories of automotive components and systems to leading Indian and international OEMs based in India, Asia, South and North America, and Europe. It has a leadership position in India in almost all the products it manufactures.
The company shares over the last three years have gained 140%, and in the last five-year period, they have yielded a return of 285%. In a recent note, domestic brokerage firm Geojit Financial Services maintained its ‘buy’ call on the stock with a target price of ₹792 apiece.
“The company is actively increasing its kit value across all segments and outpacing the industry’s growth. UML’s strong balance sheet and quick ramp-up reflect higher revenue visibility on a medium- to long-term basis,” said the brokerage.
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