Uniparts India IPO: 7 Important Points To Remember

Uniparts India IPO: Manufacturer of engineered systems and solutions, was founded in 1994. With a presence in more than 25 countries, the company is one of the top suppliers of systems and parts for the off-highway industry in the agriculture, construction, forestry, and mining (“CFM”) and aftermarket sectors. The company is set to debut in Indian stock market on Dec 12 2022. 

Uniparts India IPO Details 

Uniparts IPO Dates	30 November – 2 December 2022
Uniparts IPO Price	Coming soon
Fresh issue	Nil
Offer For Sale	14,481,942 shares
Total IPO size	14,481,942 shares
Minimum bid (lot size)	NA
Face Value	INR 10 per share
Retail Allocation	35%
Listing On	NSE, BSE

Uniparts India IPO Tentative Dates 

Event	Tentative Date
Opening Date	Nov 30, 2022
Closing Date	Dec 2, 2022
Basis of Allotment	Dec 7, 2022
Initiation of Refunds	Dec 8, 2022
Credit of Shares to Demat	Dec 9, 2022
Listing Date	Dec 12, 2022

Uniparts India IPO Industry Overview 

India’s tractor market, which is still relatively young by global standards, has grown extraordinarily rapidly in recent years. Since Independence, mid-sized tractors with engines rated at 30–40 HP have dominated the market. However, it has become more diverse recently, as evidenced by the increased demand for both larger (above 50 HP) and smaller (below 20 HP) tractors. The need for tractors of various sizes and utility levels will inevitably rise due to the growing need for greater precision in agricultural operations, particularly in regions where intensive multi-crop farming is practised. 

With a regular monsoon forecasted to lead to robust growth for the agricultural cycle and increased farmer sentiment, tractor output is predicted to increase by 5.6% in 2022. Tractor demand for agriculture has greatly increased as a result of the government’s increased attention on rural operations. However, rising tractor prices along with price increases implemented by OEMs as a result of rising commodity inflation will have an impact on attitudes in the upcoming year. Credit availability is stable, with NBFCs sharpening their focus on financing for tractors. 

Uniparts India IPO Company Overview 

The company’s product portfolio consists of adjacent product verticals such as fabrications, power take-off, and hydraulic cylinders or components, as well as core product verticals such as 3-point linkage systems (3PL) and precision machined parts (“PMP”). With a presence across the value chain, Uniparts is a concept-to-supply player for precision goods for off-highway vehicles (OHVs). 

It now operates two production sites in Ludhiana, Punjab, India, with a combined built-up area of about 216,603.00 square feet and an overall area of about 4.47 acres. It has enlarged one of the sites in Ludhiana, Punjab, enabling it to serve local businesses as well.   Additionally, it expanded its total production operations thereafter after leasing additional space in Ludhiana, Punjab. 

Uniparts India IPO Objectives 

The funds will be used for the following objectives: 

The company will not receive any proceeds from the Offer and all such proceeds will go to the Selling Shareholders. 

Uniparts India IPO Financials 

Operational & Financial Ratios
Earnings Per Share (Rs)	27.18	9.73	3.53	5.25	3.27
CEPS(Rs)	32.78	15.29	9.08	9.44	6.69
DPS(Rs)	9.00	0.00	0.00	1.20	0.00
Book NAV/Share(Rs)	89.40	71.10	60.37	58.90	54.77
Tax Rate(%)	18.60	22.53	-1.65	20.83	32.86
Margin Ratios
Core EBITDA Margin(%)	15.30	11.36	8.16	8.20	5.77
EBIT Margin(%)	17.26	10.33	4.99	6.30	5.15
Pre Tax Margin(%)	16.88	9.47	2.88	4.53	4.08
PAT Margin (%)	13.74	7.34	2.93	3.59	2.74
Cash Profit Margin (%)	16.57	11.54	7.53	6.45	5.60
Performance Ratios
ROA(%)	20.69	8.00	2.83	4.31	3.10
ROE(%)	33.87	14.80	5.93	9.24	6.16
ROCE(%)	33.07	13.98	5.74	9.27	7.25
Asset Turnover(x)	1.51	1.09	0.97	1.20	1.13
Sales/Fixed Asset(x)	2.28	1.60	1.53	2.60	2.52
Working Capital/Sales(x)	5.73	7.14	16.61	15.23	21.06
Efficiency Ratios
Fixed Capital/Sales(x)	0.44	0.63	0.65	0.38	0.40
Receivable days	57.28	62.07	63.17	53.90	59.56
Inventory Days	59.83	80.87	92.02	73.51	72.21
Payable days	68.21	75.58	64.77	69.32	79.77
Valuation Parameters
PER(x)	0.00	0.00	0.00	0.00	0.00
PCE(x)	0.00	0.00	0.00	0.00	0.00
Price/Book(x)	0.00	0.00	0.00	0.00	0.00
Yield(%)
EV/Net Sales(x)	0.15	0.24	0.40	0.39	0.37
EV/Core EBITDA(x)	0.74	1.69	4.13	4.29	4.62
EV/EBIT(x)	0.86	2.37	7.93	6.24	7.08
EV/CE(x)	0.21	0.26	0.40	0.44	0.38
M Cap / Sales	0.00	0.00	0.00	0.00	0.00
Growth Ratio
Net Sales Growth(%)	49.30	9.91	-17.63	23.40	28.57
Core EBITDA Growth(%)	106.59	66.53	-13.81	41.84	1.58
EBIT Growth(%)	149.60	127.60	-34.82	49.58	0.40
PAT Growth(%)	179.44	175.23	-32.75	60.58	-12.01
EPS Growth(%)	179.44	175.23	-32.75	60.58	-12.01
Financial Stability Ratios
Total Debt/Equity(x)	0.23	0.33	0.64	0.85	0.62

Uniparts India LTD Strengths 

• Leading market presence in global off-highway vehicle systems and components segment 
• Engineering driven, vertically integrated precision solutions provider 
• Global business model optimizing cost-competitiveness and customer supply chain risks 

Uniparts India LTD Weaknesses 

• Depends on a limited number of customers for a significant portion of our revenues 
• Unable to accurately forecast demand for its products 
• Availability and cost of raw materials and labour may adversely affect its business, financial condition, results of operations and prospects. 

Company Contact Information

Uniparts India Limited
Gripwel House, Block – 5,
Sector C6 &7, VasantKunj
NewDelhi 110070
Phone: + 91 120 458 1400
Email: compliance.officer@unipartsgroup.com
Website: https://www.unipartsgroup.com/

Uniparts India IPO Registrar

Phone: +91-22-4918 6270
Email: uniparts.ipo@linkintime.co.in
Website: https://linkintime.co.in/

Uniparts India IPO Lead Manager(s)

1. Axis Bank Limited (Past IPO Performance)
2. DAM Capital Advisors Ltd (Formerly IDFC Securities Ltd) (Past IPO Performance)
3. JM Financial Limited (Past IPO Performance)