Buy Unimech Aerospace and Manufacturing; target of Rs 1315: Anand Rathi

Buy

Anand Rathi's research report on Unimech Aerospace and Manufacturing

Driven by its focus on high-mix, low-volume production, Unimech specializes in complex, high-precision aero tooling, GSE, electromechanical sub-assemblies and precision components. Led by advanced manufacturing and strong OEM/licensee relationships, it plans to penetrate deeper into aerospace and nuclear energy, while diversifying into other high-mix, low-volume sectors organically and inorganically. The company has a dynamic management team at its helm, enabling them toachieve ~35% growthon sustainable basis and achieve ~37.5%+ RoICbyFY27.

Outlook

The company is strategically positioned to capture structural tailwinds in aerospace, defence and energy sectors. Additionally, the pre-IPO capital raise offers multiple growth opportunities, while ongoing capacity expansions provide the flexibility to scale up. Excluding the M&A impact, we expect 34%/35.2%/36.7% revenue/EBITDA/PAT growth over FY24-27. We initiate coverageon the stock, witha Buy rating and aTP of Rs1,315,45xFY27eEPSof Rs29.2.

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Unimech Aerospace and Manufacturing - 24032025 - anand