Stock Snapshot
Price Performance
Recommendation Rationale
Strong growth outlook supported by aerospace demand recovery and strategic acquisitions.
Basis of our Recommendation
Unimech is poised for robust growth driven by strong demand in the aerospace sector and strategic acquisitions, particularly the acquisition of Hobel Bellows, which is expected to enhance operational capabilities. Despite facing some margin pressures, the overall outlook remains positive with significant revenue growth and margin expansion reported in recent quarters.
Why We Like This Stock
- Strong revenue growth reported in recent quarters
- Acquisition of Hobel Bellows expected to enhance operational capabilities
- Positive outlook for future growth in the aerospace sector
Things To Watch Out For
- Facing margin pressures impacting profitability
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 209 | 243 | 240 | 346 | 497 |
| Profit Before Tax (Cr.) | 76 | 95 | 80 | 113 | 160 |
| PBT Margin | 36.3% | 39.0% | 33.3% | 32.7% | 32.3% |
| Net Profit (Cr.) | 59 | 80 | 65 | 93 | 131 |
| EPS | 11.6 | 15.7 | 12.9 | 18.3 | 25.9 |
Company Overview
Show Company Profile
Unimech Aerospace and Manufacturing Limited, a precision engineering solutions company, manufactures and sells tooling, precision components, electromechanical turnkey systems, and mechanical assemblies in India and internationally. The company operates through two segments, Aero-Tooling/MRO Tooling; and Precision Components and Assemblies. It offers aircraft engine and airframe tooling, such as jigs, fixtures, gauges, and engine handling tools, as well as manufactures high-precision components used in industries, including aerospace, defense, energy, and semiconductor. The company also provides engine lifting, balancing beams, ground support equipment, airframe assembly platforms, complex electromechanical assemblies, and engine transportation stands. It also exports its products to the United States, Germany, Canada, and the United Kingdom. Unimech Aerospace and Manufacturing Limited was incorporated in 2016 and is headquartered in Bengaluru, India.