1. At a Glance
Unimech Aerospace is that underdog precision manufacturer that quietly builds parts for Airbus and Boeing—and now, the stock is soaring faster than the jets it builds for. With 88% 3-year sales CAGR and a recent shoutout from Piyush Goyal, this SME-cap warrior is angling to join the big leagues of defense-tech manufacturing.
2. Introduction with Hook
Imagine a company that supplies Airbus and GE, gets a visit from the Union Commerce Minister, and still doesn’t pay a single rupee in dividends—because it’s too busy reinvesting in next-gen CNC wizardry.
- Sales jumped from ₹36 Cr (FY22) to ₹243 Cr (FY25).
- Profits did a flyby: ₹3 Cr to ₹83 Cr in the same period.
Welcome to Unimech Aerospace and Manufacturing Ltd, where “precision” meets “profitable obsession”.
3. Business Model (WTF Do They Even Do?)
Unimech is an OEM-tier engineering solutions provider that manufactures:
- Gas turbine & airframe tooling
- MRO equipment for aircraft
- Precision aerospace & defense components
- Mechanical assemblies for power & semiconductor sectors
Top clients include Airbus, Boeing, GE, Rolls-Royce, Dassault — aka the Marvel Cinematic Universe of aviation.
It makes over 2,500 SKUs across India’s defense-industrial complex.
Revenue streams:
- Aviation (civil + MRO): 60%
- Defense: 20%
- Power/Semiconductor: 20%
Moats?
- Long-term contracts,
- High entry barriers (certifications, tolerances in microns),
- Political capital (thanks, Piyush Goyal sir).
4. Financials Overview
| Metric | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| Revenue (Cr) | ₹36 | ₹94 | ₹209 | ₹243 |
| EBITDA (Cr) | ₹8 | ₹35 | ₹79 | ₹92 |
| PAT (Cr) | ₹3 | ₹23 | ₹58 | ₹83 |
| EBITDA Margin | 22% | 37% | 38% | 38% |
| EPS | ₹325* | ₹2189* | ₹13.21 | ₹16.41 |
| ROE (%) | – | 32.5 | – | 21.5 |
| ROCE (%) | – | 75 | – | 23.8 |
*Note: Pre-IPO capital structure
This company is giving “operating leverage” a whole new runway to take off from.
5. Valuation
- Market Cap: ₹6,350 Cr
- TTM PAT: ₹83 Cr
- P/E: 76.1x (no chill)
- Book Value: ₹132
- P/B: 9.49x
Fair Value Range (FV):
Based on sector comps and margin sustainability:
| Method | Valuation Basis | FV Range |
|---|---|---|
| DCF | 20% CAGR, 12% discount rate | ₹820–₹950 |
| Peer PE | Avg P/E ~60x | ₹980–₹1,150 |
| EV/EBITDA | 40x multiple | ₹1,000–₹1,180 |
Verdict? Market is paying for growth + hype. Buy only if you believe it’s the next Data Patterns or HAL-in-the-making.
6. What’s Cooking – News, Triggers, Drama
- Ministerial visit: Piyush Goyal visited Unimech’s Devanahalli facility in July 2025 = “Make in India” badge unlocked
- Semiconductor entry: Quietly expanded into the fab tool component space
- Capital infusion: FY25 saw ₹515 Cr inflow via financing (likely IPO proceeds)
- Hiring spike: 74,000+ shareholders and promoter stake held firm at 79.82%
- New land acquired in Karnataka for future expansion (read: DRDO, ISRO vibes incoming)
7. Balance Sheet
| Item | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity Capital | ₹1 Cr | ₹22 Cr | ₹25 Cr |
| Reserves | ₹48 Cr | ₹87 Cr | ₹643 Cr |
| Borrowings | ₹24 Cr | ₹30 Cr | ₹84 Cr |
| Total Liabilities | ₹93 Cr | ₹176 Cr | ₹807 Cr |
| Total Assets | ₹93 Cr | ₹176 Cr | ₹807 Cr |
Key Takeaways:
- Equity boost from IPO
- Healthy reserve build-up
- Leverage increasing but manageable (D/E still <1.2)
8. Cash Flow – Sab Number Game Hai
| Year | CFO (Cr) | CFI (Cr) | CFF (Cr) | Net Flow |
|---|---|---|---|---|
| FY22 | ₹2 | ₹1 | ₹-0.1 | ₹2 |
| FY23 | ₹1 | ₹-6 | ₹3 | ₹-2 |
| FY24 | ₹24 | ₹-24 | ₹6 | ₹5 |
| FY25 | ₹81 | ₹-461 | ₹515 | ₹135 |
- FY25 capex jump = fixed asset expansion + ₹344 Cr investments
- Financing tailwind from IPO
- Free cash flow? Still in “startup” mode, but trending up
9. Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE (%) | 52 | 75 | 24 |
| ROE (%) | 32.5 | – | 21.5 |
| Debtor Days | 125 | 82 | 83 |
| Inventory Days | 303 | 163 | 136 |
| CCC (Days) | 295 | 133 | 108 |
| Working Cap Days | 172 | 120 | 617 |
Red Flag: 617 working capital days is concerning. Either client payments are delayed or raw material is chilling in warehouses too long.
10. P&L Breakdown – Show Me the Money
| Metric | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| Sales (Cr) | ₹36 | ₹94 | ₹209 | ₹243 |
| COGS/Expenses | ₹28 | ₹59 | ₹130 | ₹151 |
| EBITDA | ₹8 | ₹35 | ₹79 | ₹92 |
| Net Profit | ₹3 | ₹23 | ₹58 | ₹83 |
Profitability = soaring. But will margins hold as it scales? Or will operational heat distort that lovely 38% OPM?
11. Peer Comparison
| Company | ROCE (%) | P/E | OPM (%) | Mkt Cap (Cr) |
|---|---|---|---|---|
| Hindustan Aero | 33.8 | 38.9 | 31.0 | ₹3,25,000 |
| Zen Tech | 36.7 | 59.8 | 38.4 | ₹16,778 |
| Data Patterns | 21.6 | 71.9 | 38.8 | ₹15,950 |
| Unimech Aerospace | 23.8 | 76.1 | 38.0 | ₹6,350 |
Inference:
Unimech is the smallest among giants but punches above weight in margins. Now the test is scale + consistency.
12. Miscellaneous – Shareholding, Promoters
| Category | Mar 2025 | Jun 2025 |
|---|---|---|
| Promoters | 79.82% | 79.82% |
| FIIs | 0.44% | 0.16% |
| DIIs | 7.76% | 6.41% |
| Public | 11.98% | 13.63% |
| Total Holders | 76,035 | 74,641 |
- No pledge.
- Minimal FII exposure (so less fear of flighty capital).
- Ministerial photo-op = political goodwill unlocked.
13. EduInvesting Verdict™
Unimech Aerospace isn’t just a supplier—it’s an ecosystem bet on India’s ambitions in defense, semiconductors, and aviation. Its growth has been nothing short of rocket-fueled, but at 76x earnings, Mr. Market already knows it.
The challenge? Keep margins flying while working capital doesn’t crash land.
Investor Takeaway:
Not a jetpack to riches, but definitely a precision-built engine. For those who believe India will be making fighter jets, not just flying them—this one deserves your radar.
Metadata
– Written by EduInvesting Research | July 13, 2025
– Tags: Aerospace, SME IPO, Defense Manufacturing, Precision Engineering, JetSetInvesting
