Uno Minda shares will be in focus on Tuesday after the auto components maker signed a joint venture agreement with Suzhou Inovance Automotive and its wholly-owned subsidiary, Inovance Automotive (HK) Investment, to develop and manufacture high-voltage EV powertrain products for passenger and commercial vehicles.

As part of the agreement, Inovance Automotive (HK) Investment will acquire a 30per cent stake in Uno Minda Auto Innovations Private, currently a wholly-owned subsidiary of Uno Minda. The company will be converted into a joint venture, with Uno Minda retaining a 70per cent stake. The JV will manufacture key EV powertrain components, including combined charging units, E-axles, inverters, and motors.

The joint venture will operate in India, with products distributed under the Uno Minda and Inovance Automotive trademarks. Its board will have eight directors, with Uno Minda appointing five, including the chairman, and Inovance Automotive appointing three. Governance controls include board representation rights, restrictions on share transfers, and capital structure clauses.

This JV extends Uno Minda’s collaboration with Inovance Automotive, following a technical license agreement signed in June 2024. The partnership aims to leverage Inovance Automotive’s expertise in EV powertrain technology to strengthen Uno Minda’s position in the electric vehicle components market.

Uno Minda Shares Target Price

As per Trendlyne data, the average target price of the stock is Rs 1,109, which indicates an upside of 25per cent from the current market prices. The consensus recommendation from 18 analysts for the stock is a 'Buy'.

Uno Minda Technical Indicators

Technically, the stock's relative strength index (RSI) is at 36.7. According to Trendlyne, an RSI below 30 is considered oversold, while above 70 indicates overbought conditions. Additionally, the MACD is at -11.5, which is below its signal and center line, indicating a strong bearish trend.

The stock is trading below its 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day simple moving averages (SMAs).

Uno Minda Shares Performance

On Monday, Uno Minda shares closed at Rs 892, down 1.5per cent on the BSE, while the benchmark Sensex surged 0.08per cent. The stock has declined 23per cent in the past six months but gained 74per cent in the last two years. The company’s market capitalization stands at Rs 51,226 crore.