India’s aerospace and defense sector is poised for remarkable growth, driven by government initiatives like Atmanirbhar Bharat and Make in India. The sector’s market size, valued at $26.78 billion in 2023, is projected to reach $48.41 billion by 2032, with a CAGR of 6.8%. The 2024-25 defense budget stands at Rs 621,941 crore ($74.3 billion), reflecting a 4.78% annual increase.
With a market capitalization of Rs 4,656.46 crore, the shares of Unimech Aerospace and Manufacturing Ltd closed at Rs 915.00 per share, increasing around 1.33 percent as compared to the previous closing price of Rs 902.95 apiece.
Brokerage Recommendations
Anand Rathi, one of the well-known brokerages in India, gave a ‘Buy’ call on the defence stock with a target price of Rs 1,315 apiece, indicating a potential upside of 44 percent from Friday’s closing price of Rs 916.00 per share.
Brokerage Rational
The brokerage sees the company well-positioned to benefit from structural tailwinds in aerospace, defence, and energy. With pre-IPO capital raised and capacity expansions underway, growth flexibility is high. Anand Rathi projects FY24–27 revenue/EBITDA/PAT growth of 34/35.2/36.7 percent and initiates coverage with a Buy rating, targeting Rs 1,315 (45x FY27e EPS Rs 29.2).
Operational Developments
The company has expanded capacity from 2,22,000 to 4,22,000 hours to support future growth. Headcount rose from 384 to 661, including strategic leadership hires to boost efficiency. Additionally, new facilities adding 60,000 sq. ft. are now operational, significantly enhancing overall production capabilities and infrastructure.
Strategic Focus
The company is sharpening its focus on core business verticals to streamline operations and boost efficiency. It emphasizes high-growth opportunities in aerospace, nuclear, and semiconductor segments. Additionally, it continues SKU qualifications, having successfully qualified over 4,000 SKUs, reinforcing its commitment to operational excellence and strategic growth.
Company Profile
Unimech Aerospace is an engineering solutions provider engaged in the manufacturing and supply of essential components for industries such as aerospace, defense, energy, and semiconductors. The company specifically focuses on aero tooling, ground support equipment, electro-mechanical sub-assemblies, and others
Written by Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
