Subscribe to Uniparts India Ltd: Ajcon Global

Ajcon Global IPO report on Uniparts India Ltd

Uniparts India Limited ("Uniparts") is a global manufacturer of engineered systems and solutions and are 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 its presence across over 25 countries. The Company is a concept-to-supply player for precision products for offhighway vehicles with presence across the value chain. The product portfolio of the Company 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, fabrications and hydraulic cylinders or components thereof. The Company has a leading presence in the manufacture of 3PL and PMP products globally on account of it serving some of the largest global companies. Most of the Company’s products are structural and load bearing parts of the equipment and are subject to strict tolerances, specifications and process controls.

Valuation and Outlook

At the upper end of the price band of ₹577, the Company's IPO is valued at P/E of 15.6x at FY22 Diluted EPS which we believe is reasonable considering the opportunity in the sector and strong fundamentals of the Company. We recommend investors to "SUBSCRIBE" the issue due to the following factors.

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02122022 - Uniparts India -IPO - aj