Unimech Aerospace and Manufacturing Limited

Industrials — Aerospace & Defense · NSE

₹1,786.60+₹28.80 (+1.64%)

DalalBaazaar Score

62 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by small-cap size, which brings sharper price swings, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of Unimech Aerospace and Manufacturing Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Unimech Aerospace and Manufacturing Limited, a precision engineering solutions company, manufactures and sells tooling, precision components, electromechanical turnkey systems, and mechanical assemblies.

IndustryAerospace & Defense

SectorIndustrials

Employees853

Annual revenue₹240 Cr

How does it make money?

Turns over ₹240 Cr a year. Of every ₹100 of sales, about ₹26 reaches shareholders as profit, with ₹44 left at the operating level before interest, tax and depreciation. Each of its 853 employees supports ₹28.1 lakh of revenue a year, the signature of a people-led business.

EBITDA margin44.2%

Net margin26.4%

Revenue / employee₹28.1 lakh

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

SIEMENS LTDP/E 88.8x · ROE 10.5%

ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%

What is its competitive advantage?Little sign of one

Returns on capital of 11.0% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE11.0%

ROE8.6%

Peer median ROE15.2%

What is the outlook?

3 analysts covering the stock expect revenue to grow about 40.9% and earnings to grow about 28.0% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+40.9%

Est. earnings growth+28.0%

Analysts3

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +158% while net margin moved +8% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+158%

Margin effect+8%

DalalBaazaar Score

62/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 128.7x is demanding — it needs sustained high growth to justify
✗ P/E is 61% above its own historical median of 79.7x — expensive by its own standards
✗ P/B of 12.33x is a steep premium to book

Quality vs. Valuation

Company Quality

73/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

23/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

128.7x

2Y Median

79.7x

24 monthly readings · mean 84.2x · range 40.2x–144.2x

Sector Median

88.8x

median of 3 sector peers

⚠️Current valuation is approximately 61% above its 2y median of 79.7x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 45% above the peer median of 88.8x.

vs. its own history

Expensive

79.7x median over 24 months · +61%

vs. sector peers

Expensive

88.8x median of 3 peers · +45%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

128.7x

P/B

12.33x

EV/EBITDA

85.8x

PEG

3.18

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 37.9% to 44.2% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Very low debt
Debt/Equity of 0.17x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention4

Debt is rising
Total debt is up 427% over 3 years — worth checking what it funded.
Return on equity is falling
ROE has dropped from 46.7% to 8.6% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 51.6% to 11.0% — often a sign of competition or overexpansion.
Valuation above its historical average
At 128.7x the stock trades 61% above its own median of 79.7x.

Red Flags

1 item require attention · 1 high

🔴Debt has risen sharplyFinancial
Total debt is up 427% over 3 years, from ₹24 Cr to ₹127 Cr.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 37.9% to 44.2%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹25 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

The price already assumes success
The stock trades 61% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 46.7% to 8.6%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 28% a year✓ 37.1% CAGR
Latest reported year was 70.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 42%✓ 44.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹25 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 11.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✗ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 4 neutral · 2 weak

Market Cap

₹9,094 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

128.7x

Expensive

Expensive — verify against sector peers

P/B Ratio

12.33x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹13.88

Profitable

Profitable on a per-share basis

ROE

8.6%

Moderate

Moderate capital efficiency

ROCE

11.0%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.17x

Low

Conservative leverage

Revenue Growth (YoY)

70.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

45.5%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹25 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹1,786.6

P/E (Forward)

57.8x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

29.1%

Good

Healthy core-business profitability

Net Margin

25.3%

Good

Strong bottom-line conversion

Current Ratio

4.81

Comfortable

Healthy short-term liquidity

52W Range Position

91%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

1746.1 / 1596.7

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

59.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹93 Cr	₹208 Cr	₹241 Cr	₹240 Cr	+37.1%
EBITDA	₹35 Cr	₹83 Cr	₹108 Cr	₹106 Cr	+44.3%
EBITDA Margin	37.9%	40.0%	44.7%	44.2%	—
PAT (Net Profit)	₹23 Cr	₹58 Cr	₹83 Cr	₹63 Cr	+40.5%
EPS	₹4.49	₹11.43	₹17.59	₹12.42	+40.4%
ROE	46.7%	53.5%	12.5%	8.6%	—
ROCE	51.6%	65.0%	14.8%	11.0%	—
Total Debt	₹24 Cr	₹30 Cr	₹84 Cr	₹127 Cr	+74.1%
Free Cash Flow	-₹4 Cr	₹11 Cr	-₹51 Cr	₹25 Cr	—

🟢 Revenue has grown at 37.1% a year over 3 years.

🟢 EBITDA has grown at 44.3% a year over 3 years.

🟢 EBITDA Margin has risen from 37.9% to 44.2% over 3 years (+6.3 pts).

🟢 PAT (Net Profit) has grown at 40.5% a year over 3 years.

🟢 EPS has grown at 40.4% a year over 3 years.

🔴 ROE has fallen from 46.7% to 8.6% over 3 years (-38.1 pts).

🔴 ROCE has fallen from 51.6% to 11.0% over 3 years (-40.5 pts).

🔴 Total Debt has grown at 74.1% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹4 Cr to ₹25 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹924 Cr

Total Liabilities

₹186 Cr

Total Debt

₹127 Cr

Cash & Equivalents

₹123 Cr

Operating Cash Flow

₹61 Cr

Capex

-₹36 Cr

Shareholding (proxy)

Institutional Holding

8.2%

Insider Holding

79.7%

Analyst Consensus

Recommendations

3 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹1,673.33

-6.3% vs CMP

Target Range

₹1,435 – ₹1,950

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

6 general

Unimech Aerospace and Manufacturing (NSEI:UNIMECH) Stock Price

Simply Wall Street, 14 Oct

This Defence stock is up 144% in just 5 months! Read Details

India Infoline, 21 Sept

Unimech soars 7%, up 144% from Mar low; what's driving this defence stock?

Business Standard, 21 Sept

Buy Unimech Aerospace and Manufacturing; target of Rs 1950: Choice Institutional Equities

Moneycontrol.com, 21 Sept

UNIMECH Share Price Analysis: Sector and Peer Comparison

Univest, 08 Oct

UNIMECH AEROSPACE N MFG L Share Price

Upstox, 05 May

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong13/20

🟢Financial HealthStrong15.6/20

🟢GrowthStrong18.5/20

🟡ProfitabilityModerate7.5/15

🔴ValuationDemanding3.3/15

🔴RiskHigh3.6/10

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 28% a year37.1% CAGR
✓EBITDA margin holds above 42%44.2%
✓Free cash flow remains positive₹25 Cr
✓Debt / EBITDA stays below 2x1.2x
✓ROCE stays above 8%11.0%