IPO Review - UniParts India - ICICI Direct

UniParts India (UPI), incorporated in 1994, is a leading supplier of systems and components for the off-highway market in the agriculture and construction, forestry and mining and aftermarket sectors. It has presence in over 25 countries. UPI has 6 manufacturing facilities (5 in India, 1 in USA)

- Its key product includes 3-point linkage systems (3PL) & precision machined parts (PMP) which together constitute over 90% of its sales. It also manufactures adjacent products like Hydraulics, PTO & fabrications.

- In terms of value, as of FY22, UPI has an estimated 16.7% market share of the global 3PL market and an estimated 5.9% market share in the global PMP market in the CFM (construction, forestry and mining) sector

Key triggers / Highlights

- Leading market presence in critical vehicle systems & components space catering to global off-highway segment (tractors, construction equipment)

- Engineering driven, vertically integrated precision solutions provider

- Strategically located manufacturing & warehousing units across the globe to ensure seamless delivery of its products that offer scale & flexibility

- Long term relationship with key customers including global OEM's with outside India sales constituting ~80%+ of its sales

- Healthy financials: Double digit EBITDA margin (~22%) and Return ratios profile (RoCE >25%) with Debt: Equity at 0.2x as of FY22

For details, click on the link below: Link to the report

Source : Equity Bulls

Keywords

UniPartsIndia IPOReview ICICIDirect