Unimech Aerospace and Manufacturing Limited: Comprehensive Stock Analysis Report | Scrolls
- Editor
- Oct 1
- 3 min read
by KarNivesh | 01 October, 2025
Unimech Aerospace and Manufacturing Limited is a relatively young company that has quickly carved out a name in the highly competitive aerospace industry. Founded in 2016 and headquartered in Bangalore, Unimech specializes in precision engineering solutions, focusing on complex, low-volume manufacturing for global aerospace giants like Boeing, Collins Aerospace, and Mitsubishi Power. Since its IPO in December 2024, the company has drawn the attention of investors, thanks to its extraordinary growth and promising future.
Rapid Growth and Expansion
Unimech has achieved impressive financial growth in a short period. Between FY22 and FY24, revenue surged from ₹36 crore to ₹209 crore, representing a staggering 139% CAGR. Profitability has also grown strongly, with net profit margins rising from 9% to over 27% during the same period. The company’s strong focus on exports, which account for more than 95% of revenues, has positioned it as a vital supplier in the global aerospace supply chain.
Following its IPO, which raised ₹500 crore, Unimech expanded its manufacturing capacity at Bangalore Aerospace SEZ Park by 50% and invested heavily in new machinery and skilled talent. The company also delivered over 100 tools to Boeing in 2024, signaling its strengthening relationships with major clients.
Strong Financial Performance
Profit margins and return ratios reflect Unimech’s efficiency and growth. EBITDA margins expanded from 21% in FY22 to nearly 38% in FY24, while Return on Equity (ROE) peaked at over 53% before moderating to 31% in FY25. Such high returns underline the company’s asset-light business model and specialized capabilities. Additionally, the company maintains a conservative balance sheet, with a debt-to-equity ratio of just 0.11, ensuring financial flexibility.
Earnings per share have also skyrocketed, from less than ₹1 in FY22 to ₹13.23 in FY24, showcasing immense wealth creation for shareholders in a short time.
Valuation and Market Performance
Despite its strengths, Unimech trades at very high valuations. Its Price-to-Earnings (P/E) ratio of 63.6x is far above the industry average of 45.2x, while its Price-to-Book (P/B) ratio of 7.8x also reflects premium pricing. These elevated valuations are partly due to its rapid growth and the limited number of pure-play aerospace manufacturers in India.
Since its listing, the stock has been highly volatile. It surged 52% in its first two trading sessions but later corrected nearly 79%, reflecting investor concerns about stretched valuations and market volatility. With a beta of 2.83, the stock is considered high-risk and more suited for aggressive investors with a long-term horizon.
Opportunities and Risks
Unimech operates in a high-growth industry. The Indian aerospace market is expected to grow at 15% annually, while precision tooling is projected to expand at nearly 18% CAGR globally. Unimech’s established global client base and strong certifications give it an edge.
However, risks remain. The company’s revenues are heavily concentrated in aerospace (99%) and dependent on a few large clients. Any reduction in orders could impact growth. Supply chain disruptions, regulatory challenges, and high working capital needs also pose potential hurdles.
Final Thoughts
Unimech Aerospace is an exciting growth story in India’s aerospace manufacturing sector. It offers exceptional potential but comes with equally high risks. For investors with a high-risk appetite, Unimech could deliver strong returns in the long run. For conservative investors, waiting for better valuations or limiting exposure may be the smarter strategy.
Comments