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Deven Choksey Research Report
Unimech Aerospace And Manufacturing Ltd. will launch its initial public offering on December 23 and the issue closes for subscription on Dec. 26. A niche player specialising in the manufacturing of Aero-tooling products has fixed the price band in the range of Rs 745-785 per share.
The Rs 500 crore IPO comprises of a fresh issue of Rs 250 crore and an offer-for-sale component of Rs 250 crore.
The allotment for Unimech Aerospace And Manufacturing IPO is expected to be finalized on Dec 27.
The shares will be listed on both the National Stock Exchange and the BSE on Dec. 31.
Outlook and Valuation:
Unimech Aerospace and Manufacturing is a niche player specializing in the manufacturing of Aero-tooling products, which contributed 99% to its total revenue in FY24.
Over the past two years, Unimech has achieved a remarkable revenue CAGR of 140% between FY22 and FY24, underscoring its ability to scale its business rapidly.
The company demonstrates strong efficiency with an Ebitda margin of 38%, PAT margin of 28%, and return on equity and return on capital employed of 54% in FY24.
With a P/E ratio of 69 times, Unimech’s valuation appears attractive among its peers. The company’s focused approach on a niche sector like Aero-tooling ensures continued relevance and growth opportunities in both domestic and international markets.
The combination of growth rates, strong margins, and a reasonable valuation makes it a good investment opportunity. Hence, we assign a “Subscribe” rating.
Click on the attachment to read the full IPO report:
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