Mayur Uniquoters Ltd. share price target

Mayur Uniquoters (Mayur) came out with mixed result in Q1FY17 where revenue was below expectation while EBITDA and PAT were above expectation. Lower than expected revenue was primarily due to lower than expected volume which grew just 1.8% YoY to 5.9 mn mtrs. Also, realization remained flattish YoY to Rs217.1/mtr. However, the company benefited from lower raw material prices which came down to 56.1% of sales in Q1FY17 compared to 60.5% in Q1FY16. Consequently, Mayur reported a strong EBITDA margin of 29.7% in Q1FY17 against 24.8% in...

Unique Product & Capacity caling-up to Ensure New Heights- Auto OEM Exports and Footwear to boost Sales in FY18E: Auto OEM Exports and Footwear contributed to a whopping 46.0% and 19.0% in FY16 and we see the trend to continue in a similar pattern in FY17E and FY18E. Auto OEMs in US and other parts of the world show a huge demand supply gap and hence a tremendous volume growth potential for Mayur in the upholstery market and is supposed to add a substantially to the top-line of the company.

We recently visited Mayur Uniquoters (Mayur) at Jaipur, Rajasthan. We conducted a plant visit and met the senior management of the company including Suresh Poddar, Chairman and Managing Director at Mayur....

Mayur is focusing on exports and expansion into domestic furnishing segment (B2C) by appointing a distributor in each state capital across the country. Additionally, Mayur will start delivering a new order on the export OEM side for Chrysler from 1QFY17 onwards which would lead to growth of 20% in the export-auto OEM segment (20% of...