Motilal Oswal’s target price implies a potential upside of 27% from Wednesday’s closing price.
For its bull case, Motilal Oswal has a price target of ₹2,248 by financial year 2028, which is implying a potential upside of 87% from the stock’s last closing level.
The brokerage believes Unimech Aerospace is well-positioned to benefit from long-term growth opportunities across the aerospace & defence, energy, and semiconductor equipment sectors.
In its initiation note, Motilal Oswal said Unimech has established itself as a key player in the global aero-engine and airframe tooling market, with a customer base comprising aero-engine OEMs, airframe OEMs, and their licensees.
The company manufactures specialised tooling for LEAP, Pratt & Whitney, and Rolls-Royce engines, along with airframe tools for Airbus and Boeing.
Beyond tooling, Unimech is rapidly expanding its presence in precision parts and assembly for nuclear, aerospace & defence, semiconductor, electromechanical, and other emerging industries.
The brokerage said the company’s strategy of focusing on high-mix, low-volume precision engineering has helped deepen its presence across these segments.
Unimech currently serves 18 customers in the precision engineering segment. Motilal Oswal believes the company’s competitive pricing, favourable tailwinds from new aircraft engine programmes, and the shift in maintenance, repair and overhaul (MRO) demand towards Asia position it for sustained growth.
The segment contributed nearly 80% of the company’s FY26 revenue and is expected to remain its key growth driver over the medium term.
The brokerage expects Unimech to deliver a revenue, EBITDA, and PAT CAGR of 74%, 83%, and 57%, respectively, over FY26-28E, while maintaining an EBITDA margin of around 35%.
Motilal Oswal highlighted key risks, including high revenue concentration in the aerospace segment, dependence on its top five customers, and significant exposure to exports and a few select geographies.
Unimech Aerospace shares ended Wednesday’s session 5.1% higher at ₹1,268. The stock has gained % so far in 2026.
