December 22, 2024
admin
Unimech Aerospace IPO Review
Unimech Aerospace and Manufacturing Limited is a specialized player in the manufacturing of Aero-tooling products, which accounted for an impressive 99% of its total revenue in FY24. Over the last two years, the company has demonstrated extraordinary growth, achieving a compound annual growth rate (CAGR) of 140% in revenue from FY22 to FY24. This remarkable performance highlights Unimech’s capacity to rapidly scale its operations while maintaining strong operational efficiency. In FY24, the company posted an EBITDA margin of 38%, a PAT margin of 28%, and exceptional returns on equity (ROE) and capital employed (ROCE) of 54%, reflecting its solid financial health and profitability.
Despite a relatively high P/E ratio of 69x, Unimech’s valuation remains compelling when compared to its peers, making it an attractive investment. The company’s strategic focus on the highly specialized Aero-tooling sector positions it well for continued growth and relevance, both in the domestic and international markets. The combination of its impressive growth trajectory, strong margins, and attractive valuation makes Unimech a promising investment opportunity for those seeking exposure to a high-growth, niche industry with significant upside potential.
Hence, we assign a “SUBSCRIBE” rating
IPO opens on 23 December 2024, Closes on 26 December and listing on 31 December 2024
Review by Paresh Gordhandas, CA and Research Analyst
Quicklinks
Thanks for guidance,,,,,, Regards