September 22, 2023

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Uniparts India Restricted included on September 26, 1994, is a world producer of engineered techniques and options, and it is without doubt one of the main suppliers of techniques and elements for the off-highway market within the agriculture and development, forestry and mining, and aftermarket sectors on account of their presence throughout over 25 nations. It’s a concept-to-supply participant for precision merchandise for off-highway autos with a presence throughout the worth chain. Their product portfolio contains core product verticals of 3-point linkage techniques and precision machined components in addition to adjoining product verticals of energy take-off, fabrications, and hydraulic cylinders or elements thereof. They’ve a number one presence within the manufacture of 3PL and PMP merchandise globally on account of them serving among the largest international firms. Many of the Firm’s merchandise are structural and load-bearing components of apparatus and are topic to strict tolerances, specs, and course of controls.

The corporate has 5 manufacturing amenities, 2 at Ludhiana, 1 at Visakhapatnam, and a pair of at Noida. Additionally they have arrange a distribution facility in Noida. In america, they’ve a producing, warehousing, and distribution facility at Eldridge, Iowa, acquired in 2005 by Olsen Engineering LLC, now referred to as Uniparts Olsen Inc. (“UOI”), and a warehousing and distribution facility at Augusta, Georgia. Uniparts gives replacements of 3PL components to organized aftermarket retailers and distributors in North America, Europe, South Africa, and Australia.

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Promoters & Shareholding:

Gurdeep Soni and Paramjit Singh Soni are the corporate promoters.

Pre Challenge Share Holding 75.54{ffabfa4d7ffd9b3fd000de00ee9a0a81df1e9b189f93ca1738d44fdcecc3f542}
Put up Challenge Share Holding 65.79{ffabfa4d7ffd9b3fd000de00ee9a0a81df1e9b189f93ca1738d44fdcecc3f542}

Public Challenge Particulars:

Supply on the market: OFS of approx. 14,481,942 fairness shares at Rs. 10, aggregating as much as Rs. 835.61 Cr.

Complete IPO Measurement: Rs. 835.61 Cr.

Value band: Rs. 548 – Rs. 577.

Goal: To hold out the provide on the market and obtain the advantages of itemizing.

Bid qty: minimal of 25 shares (1 lot) for Rs. 14,425 and most of 13 tons.

Supply interval: 30th Nov 2022 – 2nd Dec 2022.

Date of itemizing: 12th Dec 2022.

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  • Main market presence within the international off-highway car techniques and elements phase.
  • The corporate gives complete options and manufactures high-quality, important merchandise and elements for the OHV trade.
  • Lengthy-term relationships with key international prospects, together with main authentic tools producers.
  • Skilled and skilled administration staff.


  • The enterprise is impacted by cyclical results within the international and home financial system.
  • The corporate is uncovered to overseas foreign money alternate fee fluctuations because it has main worldwide purchasers.
  • The corporate will depend on a restricted variety of prospects for a good portion of its revenues.

Subscribe or keep away from?

Sectorial outlook – The World marketplace for 3-point linkages – estimated at $360 -370 million in 2021 – is anticipated to develop at almost 6{ffabfa4d7ffd9b3fd000de00ee9a0a81df1e9b189f93ca1738d44fdcecc3f542}-8{ffabfa4d7ffd9b3fd000de00ee9a0a81df1e9b189f93ca1738d44fdcecc3f542} in 2021-2026, buoyed by sturdy progress in tractor manufacturing volumes in North America, India, and Europe, regular progress in China and Japan. In 2021, almost 50{ffabfa4d7ffd9b3fd000de00ee9a0a81df1e9b189f93ca1738d44fdcecc3f542} of the worldwide manufacturing of tractors takes place in India, adopted by 12{ffabfa4d7ffd9b3fd000de00ee9a0a81df1e9b189f93ca1738d44fdcecc3f542} in China. Comparatively adolescent by world requirements, India’s tractor market has expanded at a spectacular tempo in the previous couple of years. For a very long time since Independence, the market was dominated by mid-sized tractors with engine capacities of 30-40 HP. However it has diversified in recent times, which is obvious within the rising demand for each greater (over 50 HP) and smaller (beneath 20 HP) tractors. With a rising want for larger precision in farm operations, particularly in areas the place intensive multi-crop farming is carried out, demand for tractors of various sizes and utility values is certain to extend. One other issue driving demand for increased HP tractors is the upgradation by farmers to permit mechanization with rotary tillers and comparable tools. Vital demand had been generated by functions in haulage and development. The entire above are anticipated to positively influence the sector the corporate is working in the long run.

The financials (income and internet revenue) are proven within the graph beneath:

Valuation – For the final 3 years common EPS is Rs. 23.83 and the P/E is round 35x on the higher worth band of Rs. 836. The EPS for FY22 is Rs. 36.98 and the P/E is round 22.6x. If we annualize Q1-FY23 EPS of Rs. 11.19, P/E is round 18.6x. It has Balkrishna Industries Ltd (28.1x), Bharat Forge Ltd (41.1x), and Ramkrishna Forging Ltd (14.7x) as its listed friends as per the RHP. The corporate’s P/E is between 22.6x and 35x. Internet margins and EPS have been rising constantly. Trying on the valuation, it appears to be affordable.

Suggestion – The corporate has a distinct segment house within the phase, it’s a international producer of engineered techniques. It additionally has a major integration that reduces its dependence on exterior provide and assist companies. After contemplating all of the elements the itemizing nonetheless appears affordable with good prospects therefore we might suggest “Subscribe” to this IPO for traders from a medium to long-term perspective.


This text shouldn’t be construed as funding recommendation, please seek the advice of your Funding Adviser earlier than making any funding choice.

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