Pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed the transcript of the Analyst/ institutional ....
UNIMECH · price
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Unimech Aerospace announced acquisition of Hobel Bellows for INR 450 crores (approximately 6-7x EV/EBITDA). Hobel manufactures metallic bellows, flexible tubing and precision assemblies with FY26 revenue of ~INR 129 crores and EBITDA margins exceeding 50%. The debt-free business operates from a 200,000 sq ft facility in Visakhapatnam SEZ, serving global OEMs with 90% export revenue (UK, US, Singapore, China). Management guided conservative 15-17% growth over 3-4 years, noting capacity utilization is currently 50-60% providing headroom for organic growth without major capex. The acquisition enables Unimech to expand beyond precision components into assemblies/subsystems and target aerospace, nuclear and semiconductor segments. Customer concentration is high at 93% from two OEM groups. Deal rationale includes lack of succession plan at Hobel (owner retired, daughters settled abroad).
This acquisition is immediately margin accretive, bringing a high-quality, cash-generative business with >50% EBITDA margins. However, the conservative growth guidance despite strong end-markets (Cummins data center demand) and high customer concentration suggest investors should monitor execution closely. The INR 450 crore investment should be recouped through operating cash flows within a few years given current profitability levels.