Business Overview: Unimech Aerospace is a global high precision engineering solutions company specializing in manufacturing of complex products with “build to print” and “build to specifications” offering, which involves machining, fabrication, assembly, testing and creating new products basis the specific requirements of our clients for the aerospace, defence, energy and semi-conductor industries.
Possess unique “build to print” and “build to specifications” capabilities.
i. Build to Print – We manufacture the products basis the specific designs and drawings shared by our clients;
ii. Build to Specifications – We assist our clients in designing and manufacturing products basis certain specifications and descriptions of the clients requirement and the expectations of the functions to be performed by such products.
Two manufacturing facilities, Unit I and Unit II, in Bangalore which is spread across an aggregate area of over 1,20,000 sq ft. Unit I in Peenya, Bangalore, is spread across an area of over 30,000 sq. ft. and Unit II facility in Devanahalli is situated in a Special Economic Zone (“SEZ”) near Bangalore International Airport which is spread across an area of over 90,000 sq. ft. Facilities are accredited with AS 9001D, BS EN ISO 9001 and ISO 45001:2018
Their product portfolio includes, inter alia, engine lifting and balancing beams, assembly, disassembly and calibration tooling, ground support equipment, airframe assembly platforms, engine transportation stands, mechanical & electro-mechanical turnkey systems, and precision components
Majority of revenue is coming from US and >95% of revenue is coming from top 10 customers, which is not good and results in high dependance on contracts from them. This is a red flag.
At ~68x PE IPO is reasonable priced. Due to market focus in this sector there could be a premium listing so you can apply for listing gains, but due to dependence on orders few customers I don’t see any reason to invest for long term.
For complete details please refer to the attached document :