IPO Note : Uniparts India Ltd By Swastika Investmart
Incorporated in 1994, Uniparts India Limited is a manufacturer of engineered systems and solutions. The company is a leading suppliers of systems and components for the off-highway market in the agriculture and construction, forestry and mining (“CFM”) and aftermarket sectors with presence across over 25 countries. The Company’s product portfolio includes core product verticals of 3-point linkage systems (“3PL”) and precision machined parts (“PMP”) as well as adjacent product verticals of power take off (“PTO”), fabrications and hydraulic cylinders or components.
* The Company offer fully integrated engineering solutions from conceptualization, development and validation to implementation and manufacturing of its products.
* The world market for 3PL was between USD 360 million and USD 370 million in 2021 and is expected to grow at nearly 6% and 8% between 2021 – 2026, buoyed by robust growth in tractor production volumes in North America, India and Europe, steady growth in China and Japan.
* The company have global footprint and served customers across countries in North and South America, Europe, Asia and Australia, including India. In India, the company have five manufacturing facilities, two at Ludhiana, Punjab, one at Visakhapatnam, Andhra Pradesh, and two at Noida, Uttar Pradesh.
* Uniparts also have a manufacturing, warehousing and distribution facility at Eldridge, Iowa, acquired under the acquisition in 2005 of Olsen Engineering LLC, now known as Uniparts Olsen Inc. ("UOI") and a warehousing and distribution facility at Augusta, Georgia.
* Uniparts primarily serve OHV players including OEMs and aftermarket retail store chains, through the global business model based on the dual-shore integrated 158 manufacturing, warehousing and supply chain management systems and solutions.
Outlook & Valuation: Uniparts is an Indian-based global manufacturer of engineered systems and solutions. The Group is one of the leading suppliers of systems and components for the off-highway market. The company’s major business areas are agriculture, construction, forestry, and after-market. The company has a leading market presence, a global business model, and long-term relationships with key customers. It also enjoys a healthy financial position with continuous growth in revenue and profit and improving margins. As for the risk factor, the issue is a complete offer for sale. However, the issue is attractively priced at a P/E valuation of 15.61, which is lesser than its listed peers, and thus we assign a Subscribe rating to this issue for aggressive investors
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