Brokerage firm Motilal Oswal has maintained its 'BUY' rating on Unimech Aerospace, setting a price target of ₹1,635. This follows strong first-quarter fiscal 2027 results, where the company recorded 71% revenue growth. The update reflects analyst confidence in the company’s recent acquisitions and expansion plans in the aerospace and defense sectors.
Motilal Oswal has kept a 'BUY' rating on Unimech Aerospace, issuing a price target of ₹1,635 for the stock. This valuation is based on 50 times the estimated earnings for the 2028 fiscal year. The brokerage's positive stance follows the company's strong performance in the first quarter of fiscal 2027.
Unimech reported significant growth in the June quarter. Consolidated revenue rose 71% year-on-year to ₹107.6 crore. Profitability also improved, with EBITDA climbing 98% to ₹39.25 crore. Net profit grew 46% to ₹27.86 crore, showing solid operating performance even as the company invested funds into new ventures.
A key driver for the brokerage’s outlook is the successful integration of Hobel Bellows, which was acquired in April 2026. This acquisition, combined with organic growth in the company's core aerospace tooling business, helped push revenues higher. Analysts see potential for continued growth as the company taps into demand from the defense, energy, and semiconductor equipment industries.
Beyond domestic operations, Unimech Aerospace is focusing on global expansion. The company has announced plans to invest around US$10 million in a joint venture in Saudi Arabia. This move is aimed at increasing its manufacturing footprint outside India, though it adds to the company's capital spending commitments.
While the outlook appears positive, investors should be aware of specific business risks. The brokerage highlighted the possibility of slower-than-expected progress in new business segments and potential pressure on profit margins. Additionally, the company faces risks related to high spending on capital projects and dependency on a concentrated customer base. Future performance will depend on the successful execution of these new ventures and the ability to manage debt and operating costs. Investors may track the progress of the Saudi expansion and whether the company can maintain its current profit margins in upcoming quarters.