Power_of_Compounding

Passionate about Equities | Long term Investor | MBA from IIT KHARAGPUR | plan to retire from corporate before Age 32

[Power_of_Compounding @chowdary457]

UniMech AeroSpace IPO Forensic Analysis.

Must read before Applying in IPO.

1. IPO price per share: 785 vs cost of acquisition to the promoters: 0.24 in 2016. That's a whopping 3270 bagger in 8 Years.

2. The company is valued at 3992cr Market cap. But what does the company own:

30000 sqft facility in Peenya on lease basis for 3 years till 1st Apr 2027. The registered office is also in this location only. Rent for whole year is 10lakhs.
90000 sqft facility leased in Devanahalli SEZ near Bangalore Airport.

These may look large plants when looked in Thousands of Square feet. But all combined 120000 sq ft is just 3 acres of Land.

So a company which has 3 acres of facility on leased land is valued 4000 crores.

3. let's see if it has any great products due to which market is valuing at such high level.

It primarily supplies tools and stands which are used as support structures in Aircraft MRO(Maintenance, Repair, Overhauling) and Assembly. These are the products which the RHP lists on Top.

These are not something only this company will be able to manufacture. There are many engineering companies which can do the same or better.

4. Let's see if the growth in financials were the reason for such high valuation:

The company has revenues of 36cr, 94cr, 208cr for FY22, FY23 and FY24 respectively. That's 140% CAGR.

But is it sustainable? In fact, H1FY25 is only 120cr. The company did not give H1FY24 break up in RHP. so assuming 104cr(half of full year) for H1 FY24 gives a growth of only 15%.

In fact, the company is operating at full capacity as per RHP. unless they open new capacity, revenue can't grow much. They can't even get any operating leverage.

5. The Cash flow from Operations are also not that great. They are around 50% of PAT. Receivable increasing.

6. The company says it is operating in Aerospace, Precision engineering, Defense and Energy.

But the Major revenue comes from Aerospace Tooling(99.35%) and very small portion 0.65% from Precision Tools.

Nothing from Defense and Energy. Then why to claim it operates in Defense and Energy? To ride the Bull run in these Themes?

7. The RHP says company acquired 30% stake in Dheya Engineering Technologies and has entered into exclusive manufacturing agreement with
Dheya Engineering Technologies Private Limitedon November 11, 2024, for the production of all current and future micro gas turbine engine models developed by Dheya.

But I can't see much about this company on the land, except for a small office in Banaglore.

8. This looks like an SME for me and not a Mainboard IPO. But valued at 4000Cr.

unsurprisingly, GMP is 60% that will value the company at 6400 cr for a company that manufacture tools on a 3 acre plant on a leased land. That's the bull market at peak.

Even if any one applied, I don't think it will be wise to stay in this post listing.
#UnimechAerospace #Unimech #IPO #ipoallotment #IPOGMP #SMEIPO #damcapital #DAMCapitalAdvisors #mamatamachineryipo #mamtamachinery #TransrailLightingipo #TransrailIPO #SanathanTextiles #SanathanTextilesIPO #concordenviro #SenoresPharmaceuticals #CarraroIndia #ventivehospitality

[Power_of_Compounding @chowdary457]

@AndhraNexus @NLRchronicles How come it's new then. It has been there before also.

[Power_of_Compounding @chowdary457]

@ujwal_kr Comparing with mutual fund returns may not be good idea. Mutual funds have SIP inflows and they kept on buying the stocks they were holding thus preventing drastic falls.

[Power_of_Compounding @chowdary457]

Be aware that the market does not turn when it sees light at the end of tunnel. It turns when all looks black, but just a subtle shade less black than the day before
-James Montier, The little book of behavioral investing

[Power_of_Compounding @chowdary457]

This time, gold is up ~180% over ~2 years from Feb-2024(2000 $/OZ) to Jan-2026 Peak(5600 $). It has already corrected ~20% from the peak. If history rhymes, it may take years to see the peak we saw a few days back.

[Power_of_Compounding @chowdary457]

Gold price increased ~180% over 3 years from Oct-2008 (686 USD per Ounce) to Sep-2011 (1919), and then corrected ~45% over the next ~3.5 years till Mar-2015.
It took almost 9 years (till Aug-2020) to reach the previous high again.

[Power_of_Compounding @chowdary457]

Expected IPO Subscription and allotment ratio in Bharat Coking coal IPO(BCCL IPO)

Retail: 42Lakh applications-> 1 out of 18 will get
Big HNI: 2.3Lakh Apps-> 1 out of 52
Small HNI: 3.4Lakh apps-> 1 out of 154
Shareholder category: 4.6lakh apps-> 1 out of 6, if applied for 14lots

[Power_of_Compounding @chowdary457]

@vishal_susheel @grok can you backrest this strategy for last 20 indian mainboard ipos?

[Power_of_Compounding @chowdary457]

Dynamatic technologies to build and supply entire rare fuselage to Dassault falcon 6x.
Cost of one falcon 6x -50M USD
Approximately, 30% of aircrafts cost goes to fuselage and 15% of fuselage goes to rear fuselage section 5. That brings approx revenue of 2M USD per aircraft.

[Power_of_Compounding @chowdary457]

I am going to play Aerospace theme through 4 stocks:
Rossell Techsys- Electric wire Harnessing, Panels in Aircraft
Dynamatic Technologies- Aerostructures
MTAR- Precision Components
Azad Engineering- Turbine Blades to Engine(supplies to Engine Manufacturers like GE, Rolls Royce)

[Power_of_Compounding @chowdary457]

Aarti Industries taking a strong support at 370.
Almost 14 weeks in this year it touched 370.

Looks like a very low risk- High reward bet.

Company also building it's capabilities well.

Price to sales: 1.8X
Price to Book value: 2.4X

[Power_of_Compounding @chowdary457]

@AnonDehlvi @microcp2mltibgr No. This happens only in preopen. At 9.15 it returns to mean immediately. Unless you are checking the market depth before 9.07 you won't be able to gain

[Power_of_Compounding @chowdary457]

Dynamatic technologies

[Prince | Accidental Investor 🇮🇳 @AI_Feb21]

Which of the 25 ideas presented at Alpha Idea you believe is worth studying more?

C: Alpha ideas Nov -2025 Edition!

[Stock Market Scientist™ @MarketScientist]

The Magic Pill to Life is:

1. Avoid sugar
2. Drink water
3. Hit the gym
4. Party less
5. Dress well
6. Make money
7. Smell nice
8. Talk less

Repost if you are doing most of the above mentioned things

Have a Great Weekend 🙏

[Power_of_Compounding @chowdary457]

@mohan_koushik1 Together you both hyped up sadhana nitro like anything in 2023. What is happening in sadhana nitro currently? Any specific reasons to company or is it just chinese competition?

[Power_of_Compounding @chowdary457]

@Randomm__stufff @investorniti Better to sell on listing whether it lists in premium or discount. The valuations are definitely lofty

[Power_of_Compounding @chowdary457]

@IkaaSid check point 5

[Power_of_Compounding @chowdary457]

BESS theme is buzzing and I am looking for a stock to play this. Came across Pace digitek, a recent IPO which looks promising and well positioned to grab the opportunity. Go through below PDF to understand the complete thesis and Target price. #BESS #PaceDigitek

[Power_of_Compounding @chowdary457]

@IkaaSid for 1GWh contract they get 900cr revenue. currently they have 5GWh capacity. Targeting 30GWh capacity by FY30 of total 250GWh requirement in India by FY30. 30GWh*900cr= 27000cr. Assuming pricing remain at the same level.

[Power_of_Compounding @chowdary457]

It was historically at 40-45 MedianPE and last year's peak was at 72PE which is for the first time. Previous ATH PE was 55. So the target for recovery will be 3000 and 3880 may take longer than expected.

[Power_of_Compounding @chowdary457]

Colgate Palmolive India stock is down 44% from ATH.

This is not the first time stock is down more than 25%. It's been 6 times since 2008 it's down by more than 25% and then back to ATH in next 2 years.
This time it's 44%.
But nothing really changed in Fundamentals.
#colgate

[Power_of_Compounding @chowdary457]

But it's a good 80% upmove from here once it goes back. This is a very good entry point for any investor to make money without stress. Global player with strong brand and mandatory product. no AI can impact your brushing.
Started buying from 2175. Target 3000/3400/3880
#colgate