Valuation Metrics Signal Enhanced Price Appeal
Recent data reveals that Uniparts India’s price-to-earnings (P/E) ratio stands at 16.75, a figure that is considerably lower than many of its peers in the auto components industry. For context, companies such as ZF Commercial and Motherson Wiring trade at P/E multiples of 60.07 and 45.39 respectively, indicating a premium valuation. The company’s price-to-book value (P/BV) is 2.42, which, while not the lowest in the sector, remains reasonable given its return on equity (ROE) of 12.61% and return on capital employed (ROCE) of 18.45%.
Moreover, Uniparts India’s enterprise value to EBITDA (EV/EBITDA) ratio is 10.06, which is significantly more attractive compared to peers like Gabriel India and JBM Auto, trading at 31.82 and 25.21 respectively. This suggests that the company is valued more modestly relative to its earnings before interest, taxes, depreciation and amortisation, enhancing its appeal for value-conscious investors.
Comparative Peer Analysis Highlights Valuation Edge
When benchmarked against its industry peers, Uniparts India’s valuation stands out as very attractive. While several competitors are classified as expensive or very expensive, Uniparts India’s valuation grade has been upgraded to ‘very attractive’ from ‘attractive’ as of 16 Feb 2026. This upgrade reflects a reassessment of the company’s fundamentals and market pricing, signalling a potential opportunity for investors seeking exposure to the auto components sector at a reasonable price point.
For instance, TVS Holdings and Belrise Industries, both rated as attractive, trade at P/E ratios of 18.72 and 46.25 respectively, with EV/EBITDA multiples of 6.8 and 17.11. Uniparts India’s valuation metrics, therefore, position it favourably within the mid-tier valuation spectrum, balancing growth prospects with reasonable pricing.
Stock Performance and Market Context
Uniparts India’s stock price has experienced some volatility recently, with a day change of -4.71% and a current price of ₹492.00, down from the previous close of ₹516.30. The stock’s 52-week high is ₹546.90, while the low stands at ₹260.00, indicating a wide trading range over the past year. Despite the recent dip, the stock has delivered a robust 51.15% return over the past year, significantly outperforming the Sensex’s 9.66% return over the same period.
However, longer-term returns paint a more nuanced picture. Over three years, Uniparts India has posted a negative return of -11.57%, while the Sensex has gained 35.81%. This divergence suggests that while the company has delivered strong short-term gains, it has lagged broader market indices over a medium-term horizon. Investors should weigh these performance dynamics alongside valuation improvements when considering the stock’s attractiveness.
Handpicked from 50, scrutinized by experts – Our recent selection, this Mid Cap from Bank - Public, is already delivering results. Don't miss next month's pick!
- - Expert-scrutinized selection
- - Already delivering results
- - Monthly focused approach
Financial Strength and Dividend Appeal
Uniparts India’s financial metrics further bolster its valuation case. The company boasts a dividend yield of 7.66%, which is notably attractive in the current interest rate environment and relative to sector peers. This yield provides a steady income stream for investors, complementing potential capital appreciation from valuation re-rating.
Additionally, the company’s EV to capital employed ratio of 2.79 and EV to sales ratio of 1.87 indicate efficient capital utilisation and reasonable sales valuation. The PEG ratio of 0.41 also suggests that the stock is undervalued relative to its earnings growth potential, a key consideration for growth-oriented investors.
Mojo Score and Rating Revision
MarketsMOJO’s proprietary scoring system assigns Uniparts India a Mojo Score of 67.0, reflecting a Hold rating. This represents a downgrade from a previous Buy rating as of 16 Feb 2026, signalling a more cautious stance despite the improved valuation grade. The downgrade likely reflects recent price volatility and the need for investors to monitor earnings momentum and sector dynamics closely.
Market capitalisation grade remains modest at 3, consistent with its mid-cap status, which may appeal to investors seeking growth opportunities without the volatility often associated with smaller caps.
Sector and Industry Outlook
The Auto Components & Equipments sector continues to face headwinds from global supply chain disruptions and fluctuating demand patterns. However, companies with strong operational metrics and attractive valuations, such as Uniparts India, may be better positioned to navigate these challenges. The company’s solid ROCE of 18.45% underscores its ability to generate returns above its cost of capital, a positive indicator amid sector uncertainties.
Investors should also consider the broader economic environment, including commodity price trends and regulatory developments impacting the automotive industry, when evaluating Uniparts India’s prospects.
Holding Uniparts India Ltd from Auto Components & Equipments? See if there's a smarter choice! SwitchER compares it with peers and suggests superior options across market caps and sectors!
- - Peer comparison ready
- - Superior options identified
- - Cross market-cap analysis
Investor Takeaway
Uniparts India Ltd’s recent valuation upgrade to ‘very attractive’ presents a compelling case for investors seeking value within the auto components sector. The company’s favourable P/E, EV/EBITDA, and PEG ratios relative to peers, combined with a strong dividend yield and solid returns on capital, suggest that the stock is priced attractively given its fundamentals.
However, the recent downgrade in the Mojo Grade to Hold advises caution, reflecting the need to monitor market volatility and sector-specific risks. Investors should balance the stock’s valuation appeal against its recent price correction and medium-term performance trends.
Overall, Uniparts India offers a blend of value and income potential, making it a noteworthy consideration for portfolios focused on the auto components industry, especially for those prioritising reasonable valuations and dividend income.
Historical Valuation Context
Historically, Uniparts India’s P/E ratio has fluctuated in line with sector cycles, but the current multiple of 16.75 is below its historical average, signalling a potential undervaluation. The shift from an ‘attractive’ to ‘very attractive’ valuation grade reflects this relative cheapness, especially when contrasted with the broader industry’s elevated multiples.
Investors familiar with the company’s past valuation trends may find the current pricing an opportune entry point, provided the company sustains its operational performance and dividend payouts.
Conclusion
In summary, Uniparts India Ltd’s valuation parameters have improved significantly, positioning the stock as a very attractive option within the auto components sector. While the Mojo Grade downgrade to Hold tempers enthusiasm, the company’s strong financial metrics, dividend yield, and favourable peer comparison support a cautiously optimistic outlook. Investors should continue to monitor sector developments and company performance to capitalise on this valuation shift effectively.
Unlock special upgrade rates for a limited period. Start Saving Now →
