IPO Note : Unimech Aerospace and Manufacturing Ltd By Nirmal Bang Ltd
Background
Unimech Aerospace and Manufacturing Limited is a prominent provider of engineering solutions, specializing in aerospace, defense, energy, and semiconductor components. With advanced manufacturing facilities in Bangalore and a focus on precision-engineered, export-oriented products, the company serves major global OEMs. Its strategic alignment with expanding global markets and government initiatives strengthens its position in the precision engineering sector.
Details of the Issue:
The public issue consists of Offer For Sale aggregating up to Rs 250 Cr and fresh issue up to Rs 250 Cr. Net proceeds shall be utilized towards:
* Funding of capex for expansion through purchase of machineries and equipment: - 80 Cr.
* Funding working capital requirements of our Company: - 70 Cr.
* Repayment of certain borrowings: - 40 Cr.
Investment Rationale:
* Advanced Manufacturing Capabilities
* Digitally Integrated Operations Driving Efficiency
* Established Expertise in a High-Entry-Barrier Sector
* Strong Vendor Ecosystem and Sub-Contractor Management
Valuation and Recommendation:-
Unimech Aerospace’s advanced manufacturing capabilities, digital integration, and expertise in high-barrier sectors establish it as a leading player in precision engineering. The company’s strong financial performance is driven by operational efficiency, and global OEM partnerships. With a revenue CAGR of 140% (FY22-24), industry-leading EBITDA margin of 38%, and ROCE of 57.6%, it outperforms peers in growth and profitability. While its valuation multiples EV/EBITDA of 51x and P/E of 69x are more reasonable than its competitors, they reflect its strong fundamentals and growth potential. Thus we recommend subscribing to the issue.
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SEBI Registration number is INH0000017660
