₹1803.5
-0.33% today
· 30d +3.0%
as of 2026-11-09
Price · Daily Candles
“Aerospace & Defense Player UNIMECH Soars on Q1 Earnings, But Valuation Reaches Stratospheric Levels”
UNIMECH reported a strong Q1 2026, with revenue up 70.86% YoY to ₹108 Cr and net profit jumping 45.7% YoY to ₹28 Cr. This recent performance has fueled a significant stock rally, pushing the price up 56.14% in 6 months. However, the company trades at a rich TTM PE of 101.79, significantly higher than the sector average, and its business score indicates 'stretched' valuation.
BULL CASE
+Q1 2026 revenue surged by 70.86% YoY to ₹108 Cr, demonstrating strong operational recovery.
+Net profit for Q1 2026 grew by 45.7% YoY to ₹28 Cr, highlighting improved profitability.
+The stock has delivered impressive returns, up 56.14% in the last 6 months and 13.29% in the last week, nearing its 52-week high.
+Operating profit margin (OPM) stands at a healthy 40.52% for Q1 2026, indicating efficient cost management.
BEAR CASE
−UNIMECH's TTM PE of 101.79 is substantially higher than peers like HAL (33.92) and BEL (46.31), suggesting a stretched valuation.
−Despite strong quarterly growth, annual net profit declined by 24.17% YoY to ₹63 Cr in FY26.
−DII shareholding decreased by 0.4% QoQ to 5.59% in Q1 2026, while public holding increased by 0.34% to 14.16%.
−ML growth predictions for EBIT are 'neutral' (0.39-0.403 rank) and sales are 'weak' (0.33-0.466 rank) over various lookback periods.
⟳ What Changed
₹ Latest Earnings · Q ending 2026-09-30
REVENUE
₹123 Cr
+98.44% YoY
NET PROFIT
₹32 Cr
+102.76% YoY
OPM
43.07%
+3.53pp YoY
EPS
₹6.24
PE 101.79
Intrinsic value · DCF: N/A — ML model predicts severe Δ FCF compression (h1=-0.3%, h2=-6.6%, h3=+3.1% of mktcap), driving projected FCF negative by year 3 despite healthy current FCF. Treating as forecast outlier rather than reporting a misleading ₹0 valuation. Use the Strategy Fit and ML sections instead.
◇ Sector Position
UNIMECH's TTM PE of 101.79 positions it as a significantly more expensive Aerospace & Defense play compared to peers like HAL (33.92 PE, 19.67% ROCE) and BEL (46.31 PE, 35.97% ROCE).
PEERPEROCE %
UNIMECH101.7922.0
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ML Forward Growth Predictions 🔒
60
SCORE / 100
Overall
6-axis composite of the sections below.
Performance
STRONG
100
Valuation
STRETCHED
5
Growth
DECLINING
29
Profitability
HIGH
98
Technicals
STRONG
77
Risk
MODERATE
50
Key Stats
TTM PE
101.79
P/B
9.28
52W HIGH
₹1901.0
OFF HIGH
-5.13%
MKT CAP
₹9224 Cr
◉ Active Signals
MACDBullish15.0421
RSI(14)Neutral58.54
Street Consensus
2 analysts₹1482.5
mean target
Low ₹1435.0Now ₹1803.5High ₹1530.0
⧉ Strategy Fit 🔒