Unimech Aerospace and Manufacturing Limited IPO (Unimech Aerospace IPO) Detail – Date, Price, Review, Valuation & Financials

Unimech Aerospace IPO Detail Review –

Unimech Aerospace IPO is set to open for subscription from 23rd Dec 2024 to 26th Dec 2024. In this article we will analyze the financials , strengths and weaknesses of the Unimech Aerospace IPO. Keep scrolling below to read more!

Unimech Aerospace IPO Overview –

Unimech Aerospace IPO Market Lot –

Unimech Aerospace IPO minimum market lot is 19 shares with ₹14,915 application amount. The retail investors can apply up to 13 lots with 247 shares or ₹1,93,895 amount.

Unimech Aerospace IPO Book Running Lead Managers –

• Anand Rathi Securities Limited

• Equirus Capital Private Limited.

Unimech Aerospace IPO Promoters –

• Anil Kumar P

• Ramakrishna Kamojhala

• Mani P

• Rajanikanth Balaraman

• Preetham SV.

Unimech Aerospace IPO Registrar to the offer –

The registrar for the Unimech Aerospace IPO is Kfin Technologies Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

The Objective Of The Issue –

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Financing capital expenditures for growth using the company’s acquisition of machinery and equipment.

• Financing the company’s operating cash needs.

• Investment in the material subsidiary for the following purposes:

  • Financing its working capital needs
  • Buying machinery and equipment
  • Repaying or partially repaying some of the loans that its material subsidiary has taken out.
• General corporate purposes.

Key Performance Indicator –

The market capitalization of Unimech Aerospace and Manufacturing Limited is Rs 3,992.27 Cr.

KPI as of March 31, 2024.

Financial Status –

Evaluation of P/E Ratio :

Considering the FY ended 31 Mar 2024 with an EPS of Rs.13.23 from the last year, the resulting P/E ratio is 59.33x.

Considering the weighted EPS of Rs.8.47 for the last three years, the P/E ratio is 92.68x.

Comparative Analysis with Listed Peers

The average P/E Ratio of the industry is 222.44x.

In simple words, the P/E ratio of this IPO (59.33x), compared with the industry’s average P/E of 222.44x, has an undervaluation (on a P/E ratio basis only). Hence the price of the Share seems fully priced for the investors when considered based on the average P/E ratio of the industry.

Peers of Unimech Aerospace IPO –

Unimech Aerospace and Manufacturing Limited peer comparison with similar listed entities.

Dividend Policy –

The company has not paid a dividend in the last three FYs.

Unimech Aerospace IPO Strengths –

• Competencies in high-end manufacturing for delivering precision engineering.

• Multi-billion dollar digital manufacturing company with excellent infrastructure for seamless integration of operations.

• The mature player with distinctive competencies in a high barrier-to-entry market.

• Export-driven player: global delivery service model.

• Powerful vendor ecosystem along with strong contractor management proven execution capability.

• Strong experience in having complementary management teams having sound implementation skills and operational effectiveness.

Unimech Aerospace IPO Weakness –

• Reliance on the Aerospace Sector: 98.25% of the revenue earned is from the aerospace sector during a period of six months closing September 30, 2024. Any changes detrimental to the business in this particular sector will reflect unfavorably in the operations and the finances of the company.

• Middle Customers & Company’s Reliance: More than 90% of the total revenues are dependent on the top five customers of the company. Losing any of these important customers, or even a change in the volume of their purchase, would cause adverse effects on the financial conditions of the company.

• Long Payment Terms: The business usually understands long gestation periods that include an average time from order to payment of 7 to 28 weeks. Also, this scenario affects operational cash flows and requirements of working capital.

• Foreign currency exposure: A large portion of sales revenue comes from exports (95.67% to 97.64% in the recent financial period). Thus, an adverse movement in foreign currency rates, particularly between the Indian Rupee and currencies like the dollar and euro, affects profitability.

• Cash Flow Issues are Negative: The company has had negative cash flows from the investments and financing activities in previous periods. The negative cash flows would adversely affect financial resources and operational stability if they recur in the future.

Unimech Aerospace IPO Status –

Unimech Aerospace IPO allotment status will be available on the Kfin Technologies Limited website. Click on this link to get allotment status.

Disclaimer –

• Don’t decide to subscribe to an IPO just based on the initial price, as it can change before the listing. Subscribe only after considering fundamentals of the companies.

Conclusion –