Defence stock engaging in the manufacturing of complex tools like mechanical assemblies, electro-mechanical systems, and components for aeroengine and airframe production jumped upto 8 percent in the day’s trade following block deal worth Rs. 70 Crores.
Price Action
With a market capitalization of Rs. 7,334 Crores, the shares of Unimech Aerospace and Manufacturing Limited were trading at Rs. 244.40 per equity share, up 5 percent from its previous day’s close price of Rs. 1,373.20.
What Happened
As per the latest block deal data available on NSE, VQ Fastercap Fund has purchased 5,04,000 equity shares of Unimech Aerospace and Manufacturing Limited at an Average price of Rs. 1,387.56 for a consideration of Rs. 70 Crores.
About the Company
Unitech Aerospace and Manufacturing Limited is engaging in the manufacturing of complex tools like mechanical assemblies, electro-mechanical systems, and components for aeroengine and airframe production. Its product portfolio includes aero enginne tooling, airframe tooling, precision parts and precision sub systems.
It is an is an engineering solutions provider specializing in the manufacturing of complex products with “build to print” and “build to specifications” offerings. This involves machining, fabrication, assembly, testing, and creating new products based on the specific requirements of clients in the aerospace, defense, energy, and semiconductor industries.
The company operates two manufacturing facilities in Bangalore, covering a total area of over 1,20,000 sq ft. Unit I, located in Peenya, spans over 30,000 sq ft, while Unit II, situated in a Special Economic Zone near Bangalore International Airport, covers over 90,000 sq ft.
Financials & Ratios
Its Revenue from operations grew by 122 percent YoY from Rs. 94 Crores in FY23 to Rs. 209 Crores in FY24, accompanied by profits of Rs. 23 Crores to Rs. 58 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 73.8 percent and a return on capital employed (ROCE) of 75.4 percent. It has maintained a debt-to-equity ratio of 0.20.
Written by: Bharath K.S
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