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Check Before You Invest : Unimech Aerospace and Manufacturing Ltd

BSE: 544322 NSE: UNIMECH ISIN: INE0U3I01011
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Defence

Snapshot

Q.1 Which industry/sub-sector does Unimech Aerospace and Manufacturing Ltd belong to?
Unimech Aerospace and Manufacturing Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Defence segment.
Q.2 Is Unimech Aerospace and Manufacturing Ltd a good quality company?
Unimech Aerospace and Manufacturing Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Unimech Aerospace and Manufacturing Ltd undervalued or overvalued?
Unimech Aerospace and Manufacturing Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 3-year
Historic Median
Price to Earnings 208.54 181.31
Price to Book 9.71 8.56
Price to Sales 128.84 129.44
EV to EBITDA 120.85 176.30
Q.4 Is Unimech Aerospace and Manufacturing Ltd a good buy now?
Unimech Aerospace and Manufacturing Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

Q.1 Gross Profit margin of Unimech Aerospace and Manufacturing Ltd?
Unimech Aerospace and Manufacturing Ltd Gross profit margin which is the profit after deduction of direct costs, is 67.8% for FY-2025, which is above its 3-year median of 17%, indicating increasing margins.

Q.2 Operating Profit Margin of Unimech Aerospace and Manufacturing Ltd?
Unimech Aerospace and Manufacturing Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 18.46% for FY-2025, which is above its 3-year median of 12.86% indicating increasing margins.

Q.3 Net Profit Margin of Unimech Aerospace and Manufacturing Ltd?
Unimech Aerospace and Manufacturing Ltd Net Profit Margin is 44.96% for FY-2025, is above its 3-year median of 7.9%, indicating increasing margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 67.8 17
Operating Profit Margin (%) 18.46 12.86
Net Profit Margin (%) 44.96 7.9

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Unimech Aerospace and Manufacturing Ltd?
Unimech Aerospace and Manufacturing Ltd Return on Asset is 6.41%, which is in line with its 3-year historical median of 6.41%, indicating stable asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of Unimech Aerospace and Manufacturing Ltd?
Unimech Aerospace and Manufacturing Ltd Return on capital employed is 9.75% for FY-2025, which is below its 3-year historical median of 11.52%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.6 Return on Equity (ROE) of Unimech Aerospace and Manufacturing Ltd?
Unimech Aerospace and Manufacturing Ltd Return on equity is 6.94% for FY-2025, which is below its 3-year historical median of 8.94%, indicating the business is making worse use of its shareholders capital.

C: How much debt does the business have and is it at a sustainable level?

Q.7 Debt to Equity ratio of Unimech Aerospace and Manufacturing Ltd?
Unimech Aerospace and Manufacturing Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.09, indicating lower debt levels in the industry.

Q.8 Debt to cash flow from operations of Unimech Aerospace and Manufacturing Ltd?
Unimech Aerospace and Manufacturing Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Unimech Aerospace and Manufacturing Ltd?

Q.1 Promoter shareholding and pledge status of Unimech Aerospace and Manufacturing Ltd?
Promoters hold 79.82% of the Unimech Aerospace and Manufacturing Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Unimech Aerospace and Manufacturing Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Unimech Aerospace and Manufacturing Ltd vs industry peers?
Unimech Aerospace and Manufacturing Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 26.33%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) - 26.3
Gross Profit Growth (%) 480 49.7
Operating Profit Growth (%) 166.7 47.2
Net Profit Growth (%) 850 45.5
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 0.14 0.68
ROE (%) 6.94 12.05
ROCE (%) 9.75 15.82
Cash Conversion Cycle (days) 54.57 130

Valuation & price assessment

Q.1 Stock return of Unimech Aerospace and Manufacturing Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of 13.21% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - 13.2%
Q.2 Valuation ratios of Unimech Aerospace and Manufacturing Ltd vs historical?
The current P/E ratio of 208.54 is higher than its historical median of 181.31, indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 3-year historical median and industry numbers?
Valuation Ratios Current 3-year
Historic Median
3-year
Industry Median
Price to Earnings 208.54 181.31 70.21
Price to Book 9.71 8.56 8.10
Price to Sales 128.84 129.44 9.52
EV to EBITDA 120.85 176.30 39.29

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