🚀 Unimech Aerospace: Soaring High in Precision Engineering
India’s Emerging Powerhouse in High-Precision Aerospace Manufacturing
Unimech Aerospace and Manufacturing Limited is fast emerging as a leader in India’s precision engineering space. With a market capitalization of around ₹4,800 crore and FY25 revenue of ₹247 crore, the company designs and manufactures complex assemblies and components for the aerospace, defense, energy, and semiconductor industries.
Business Overview
Unimech offers aero tooling, precision assemblies, and ground support systems for global OEMs such as Boeing, Airbus, Rolls-Royce, GE, and Dassault. The company earns over 90% of its revenue from exports, demonstrating strong global integration and technical expertise.
Recent Performance
In Q1 FY26, Unimech reported ₹63 crore in revenue, up 25% YoY and 16% QoQ, with net profit rising 43% YoY despite a modest sequential dip. FY25 marked a milestone year, with 240% capacity expansion, seven new customer additions, and diversification into nuclear, defense, and semiconductor domains—laying the foundation for long-term growth.
Growth Outlook
Unimech’s growth trajectory is underpinned by diversification, sectoral expansion, and capability enhancement. The company is qualifying new LEAP engine tools and expanding its airframe system offerings while entering the defense and MRO markets. Its 30% acquisition of Dheya Engineering boosts in-house design and manufacturing depth.
With India targeting ₹1.75 lakh crore in aerospace and defense output by 2025 and a ₹6.22 lakh crore defense allocation, Unimech is well aligned with national priorities of indigenization and export growth. Management expects multi-year growth momentum with an estimated 35% plus CAGR in key verticals like aero-tooling.
Investment View
Unimech exemplifies the “Make in India” manufacturing success story. Supported by strong industry tailwinds, a premium client base, and disciplined execution, the company offers an appealing long-term opportunity. The stock’s RSI near oversold levels and firm technical support zones indicate limited downside risk and a favorable risk-reward setup for long-term investors.
Recommendation:
BUY for long-term investors (3–5 years) and ACCUMULATE on dips for the medium term (1–2 years).
📊 Analysts remain positive: Anand Rathi pegs potential upside around 68%, while SBI Securities values the company at a reasonable FY25 P/E of 51.6x—below peer averages.
Disclaimer
This analysis is intended solely for educational and informational purposes and does not constitute any investment or financial advice. Past performance is not indicative of future results. All information is sourced from public company filings, analyst reports, and third-party sources believed to be reliable. In accordance with SEBI guidelines, market data is presented with a three-month lag. Investors should conduct independent research, perform due diligence, and consult qualified financial advisors before making any investment decisions. The views expressed are personal and may be subject to errors or bias.