Unimech Aerospace and Manufacturing IPO: The good and the bad

Published: 20th Dec 2024

By: Value Research

About Unimech Aerospace and Manufacturing

Unimech Aerospace and Manufacturing is a high-precision engineering solutions company that specialises in the manufacture and supply of critical parts for the aerospace, defence, energy and semiconductor industries. The company serves more than 26 customers across seven countries.

IPO details

Post-IPO

Financial history

EBIT is earnings before interest and tax PAT is profit after tax

Key ratios

ROE is return on equity ROCE is return on capital employed

The good

Unimech is an approved manufacturer and supplier for aerospace, defence, semiconductor and energy industry leaders. Since their products are critical in nature, it is difficult for OEMs (original equipment manufacturers) to switch or find new vendors. This allows Unimech to maintain high-profit margins.

The good

As of H1 FY25, Unimech has manufactured 2,999 SKUs in tooling and precision complex sub-assemblies and 760 SKUs in precision machined parts. Unimech's varied product offerings enable it to cater to multiple industries and customers.

The bad

As of H1 FY25, 94.62 per cent of Unimech’s total revenue came from the top five customers. Thus, losing even any single client can significantly hamper its financials.

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