Uniparts: According to grey market premium, Uniparts India, whose Rs 835.61 crore IPO ran from November 30 to December 12 is anticipated to have a respectable start on Monday. Grey market premium (GMP) for the IPO was Rs 51 over the Rs 577 issue price, indicating a 10% listing boost later at 10:00 am.
Unipart India likely to see single digit listing gain
Qualified institutional buyers outbid the investor category’s quota by 67.14 times in the successful Uniparts India IPO. The quota set out for non-institutional buyers was oversubscribed 17.86 times compared to 4.63 times for retail individual investors.
The basic 18-month price objective for the stock was set at Rs 711 by Ventura Securities, which had assigned the Uniparts India IPO a “subscribe” rating. This suggests a gain of 23.2% over the IPO price. The local brokerage has set a bull case target for the stock of Rs 964 (with a 67% possible increase) and a bear case objective of Rs 449 (with a 22.2% potential decrease).
The IPO commanded GMP as high as Rs 140 and as low as Rs 45 recently
Ventura claimed that Uniparts can achieve revenue growth of 12.5% due to slow but steady improvement in the global economy, increased infrastructure spending in the US, increase in farm income, and shift in manufacturing to India. Ebitda increased by 12%, and PAT was Rs 247 crore. That said, it anticipates input cost pressure will cause Ebitda margin to decline 26 bps to 21.6% by FY25. Due to the decrease in debt, net margin is predicted to increase by 40 bps to 14.2%.
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Venture expects FY25 revenue to be Rs. 1,747 crore and PAT to be Rs. 247 crore. Nevertheless, it predicts that pressure from input cost will cause Ebidta margin to decline 26 basis points to 21.6% by FY 25. Due to the decrease in debt, net margin is predicted to increase by 40 bps to 14.2%.
Uniparts India is a global manufacturer of engineered systems and solutions and is one of the leading suppliers of systems and components for the agriculture and construction, forestry and mining (“CFM”) and aftermarket sectors on account of their presence across 25 countries.
The business has a presence throughout the value chain and is a concept to supply player for off-highway vehicle precision products. The company’s product portfolio consists of adjacent product verticals such as power take-off, fabrications, and hydraulic cylinders or their parts, as well as core product verticals such as 3-point linkage systems and precision machined parts.
In its IPO Note for Uniparts, Nirmal Bang Securities mentioned its capacity to expand and execute with top line growth at a 12% CAGR over FY17–22 and scaled revenue of Rs 1,227 crore in FY 22. According to Uniparts, the company’s reduction in debt from Rs 330 crore in FY19 to Rs 83 crore as of June 2022 has helped the company operate better overall.
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