Anand Rathi IPO report on Uniparts India Ltd
Uniparts India ltd is a global manufacturer of engineered systems and solutions and is one of the leading suppliers of systems and components for the off-highway market in the agriculture and construction, forestry and mining (“CFM”) and aftermarket sectors on account of their presence across over 25 countries. The company is a concept-to-supply player for precision products for off-highway vehicles (“OHVs”) with presence across the value chain. Their product portfolio includes core product verticals of 3-point linkage systems (“3PL”) and precision machined parts (“PMP”) as well as adjacent product verticals of power take off (“PTO”), fabrications and hydraulic cylinders or components thereof. They have a leading presence in the manufacture of 3PL and PMP products globally on account of them serving some of the largest global companies. Most of their products are structural and load bearing parts of the equipment and are subject to strict tolerances, specifications and process controls. A series of precision engineering process steps converge in to manufacturing of these products.
Valuation and Outlook
The Company intends to expand into newer geographies, adjacent product verticals, acquire additional customer accounts and increase wallet share of existing customers. It also plans to grow inorganically through strategic acquisitions and alliances. When compared to its listed peers, the issue appears to be reasonably priced. We recommend a "Subscribe-Long Term" rating to this IPO.