1. At a Glance
Unimech Aerospace is the overachieving millennial of the Indian aerospace industry — born in 2016, IPO in 2024, and already rubbing shoulders with Boeing, Airbus, and Rolls Royce. Sounds glamorous until you realize 89% of its revenue comes from just two customers — basically a clingy situationship disguised as a global business. With a market cap of ₹5,330 Cr, PE of 65x, and margins juicier than a monsoon mango, the company is the poster child of “hyped but hot.”
2. Introduction
Picture this: a Bengaluru startup factory (Peenya + SEZ) churning out 2,500+ aerospace SKUs with near 95% utilization. Now replace chai-samosa energy with CNC machines, ISO certifications, and clean rooms. That’s Unimech Aerospace.
Their primary gig? Making gas turbine tools, airframe tooling, and precision assemblies forthe crème de la crème of aviation— Airbus, Boeing, Dassault, GE, Rolls Royce. If you’ve ever sat in a plane, odds are something inside it had Unimech’s fingerprints on it (figuratively, don’t panic).
But UAML isn’t just aerospace. They’ve also forayed intodefense, semiconductor, and power generation tooling. Basically, if it’s complex and expensive, they’ll manufacture it.
Sounds perfect, right? Except there’s a catch:customer concentration.When 89% of revenue is from two clients, one bad procurement cycle could turn their runway into a nosedive. Still, investors seem to love it, because — admit it — “aerospace” in the name is sexier than “axles” or “pipes.”
3. Business Model (WTF Do They Even Do?)
Unimech’s business is simple:make complex things nobody else in India bothers making.
- Aero Engine Tools:Complex tooling, electro-mechanical assemblies, precision machining for engine maintenance and MRO.
- Airframe Tools:Ground support equipment, lifting beams, platforms — basically the Ikea of aerospace tooling, minus the Allen key.
- Complex Components:Transportation stands, subsystems for defense & semiconductors.
- Industries Served:Aerospace (92% exports), Semiconductor (tiny), Energy (smaller still).
Revenue Split (FY24):
- Aero-tooling: ~99%
- Precision components & others: ~1%
Geography:
- North America: 92%
- Germany: 5%
- India: 3% (yes, home market is an afterthought).
So, the “Make in India” tagline? More like “Make in Bangalore, Ship to Boeing.”
4. Financials Overview
Quarterly Snapshot (Q1 FY26 – Jun’25):
| Metric | Latest Qtr | YoY Qtr | Prev Qtr | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | ₹63 Cr | ₹59 Cr | ₹68 Cr | +6.4% | -7.4% |
| EBITDA | ₹20 Cr | ₹26 Cr | ₹28 Cr | -23.1% | -28.6% |
| PAT | ₹19.1 Cr | ₹21 Cr | ₹29 Cr | -9.0% | -34.1% |
| EPS (₹) | 3.8 | 4.7 | 5.7 | -19.1% | -33.7% |
Commentary:Topline grew YoY, but margins contracted like jeans after Diwali. PAT fell QoQ, reminding investors that aerospace contracts aren’t linear. Annualized EPS = ~₹16 → at CMP ₹1,056, recalculatedP/E ~66x. Industry PE = ~66x. So yes, priced for perfection.
5. Valuation (Fair Value Range)
Three methods, same conclusion: expensive.
- P/E Method:EPS ₹16. Band 40x–55x (reasonable for defense/aero).FV = ₹640 – ₹880
- EV/EBITDA Method:FY25 EBITDA = ₹86 Cr. EV ~₹5,272 Cr. EV/EBITDA currently 44x. Apply 20x–28x.FV ≈ ₹1,720 – ₹2,400 Cr market cap → per share ₹340 – ₹470
- DCF (aggressive):FCF patchy (negative in FY25 due to IPO-fueled investing). Assume normalized FCF ₹70 Cr, growth 15%, discount 12%.FV ≈ ₹700 – ₹900
Final FV Range:₹650 – ₹900(Educational only, not investment advice. Don’t mortgage your scooter to chase it.)
6. What’s Cooking – News, Triggers, Drama
- IPO (Dec 2024):Raised ₹5,000 Cr, went public, instantly became the shiny aerospace toy on Dalal Street.
- Capacity Utilization:Already at 94.6%. Unless they expand, future growth = “overbooked flight.”
- Exports Heavy:92% North America = FX gains but geopolitical
