Uno Minda share price flies to a new high as the winning streak continues for the second day

Uno Minda share price extended its winning run for the second consecutive session, rising more than 9% to a 52-week high following the company's report on the execution of the technical license agreement with Suzhou Inovance Automotive Company. Uno Minda share price today opened at ₹995.30 apiece on BSE, the stock touched an intraday high of ₹1,064.85, and an intraday low of ₹981.30. 

On Thursday, Uno Minda's share price shot up by 19% in the intraday session, setting a new lifetime high of ₹1,025, exceeding the ₹1,000-mark for the first time. Furthermore, Thursday's intraday high is the stock's greatest advance in the last eight years. In two sessions, Uno Minda share price has climbed about 24%. 

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The rally came after the company announced on Wednesday that it had entered into a Technical License Agreement (TLA) with Suzhou Inovance Automotive Co., Ltd. in China. This agreement would allow Uno Minda to manufacture and distribute certain high-voltage electric vehicle products for both passenger and commercial vehicles in India.

The deal allows the firm to manufacture combination charging units (CCU), e-axles, inverters, and motors. The corporation will pay a royalty on sales in exchange for the technology.

The business thinks that this collaboration will greatly broaden its e-4W product line, allowing it to better service the expanding Indian EV market.

Meanwhile, its EV product line for 2W and 3W comprises Battery Management Systems (BMS), on-board chargers, off-board chargers, RCD cables, body control modules, smart plugs, telematics, and Acoustic Vehicle Alert Systems (AVAS).

The firm is stepping up its attention on the EV industry, as indicated by a growth in its EV order book to ₹38 billion in Q4 FY24, up from ₹33 billion the previous quarter.

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"Auto component maker Uno Minda is in action mainly on the back of inking a deal with a Chinese company to boost the electric four-wheeler product portfolio and enabling the company to effectively cater to the fastest growing Indian EV market. This deal is a technical licensing agreement with China-based Suzhou lnovance Automotive Company post this Uno Minda will develop, manufacture, and sell four-wheeler electric powertrain products.

Technically the stock has touched an important resistance mark of 1050.00 on its daily time frame charts and is facing selling pressure at higher levels. With the RSI (14) near the 82 mark, indicating slight overbought conditions, it is advisable to book partial profits at current levels. A pullback towards the 900-930 zone should offer an attractive buying opportunity if it occurs from the current levels," said Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities.

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