Mayur Uniquoters Ltd

Mayur Uniquoters Ltd

The Company is engaged in the manufacturing of artificial leather/foam leather, and other substitutes of leather. It is largest player in India for this sector.
It manufactures coated textile fabric. The Company’s products are used in segments, such as footwear, furnishings, automotive original equipment manufacturer (OEM), automotive replacement market, and automotive exports. 50% of the revenue from footwear sections nd 35% from automotive sector.

Market Cap.: ₹ 1,565.14 Cr.
Current Price: ₹ 341.90
Book Value: ₹ 84.21
Stock P/E: 18.05
Dividend Yield: 1.04%
Face Value: ₹ 5.00

Company is virtually debt free.
Company has good consistent profit growth of 26.64% over 5 years.

The company is stagnant in terms of overall sales which is why share price is going down bit by bit. Although profit is still growing.

I am really not sure about what to do with this company. Value investors are into this company. I only see one year of big success where the share price just tripled. Only one year in 2014 everyone one was into this company. I can see many great analysis done for the company. The share price is almost stagnant after 2014.

The business is good there is lot of scope it is not going to be dead in coming future but boom. The industry it is into is great. I don’t know about quality of the product whether it has pricing power because of quality it give. I don’t think so.

No end user product the client have many options in the market. China is a big competitor for India in this segment.

Company valuation is just right with above 20% profit growth and net profit of 82 Cr. Tt is yet not a bargain but can hold a position at this price now that it is down for past couple of months.

Net Profit: 82 cr
Profit growth: 20%

P/E looks high

One thing to make sure is 20% growth is still a lot can the company maintain this growth for 4-5 years. I think so.

I liked the business thumbs up to that Synthetic leather what can go wrong. But no end customer product thats a minus. Also I read somewhere about problem within management. Father and Son not sure though.
There are rumors in the market that Mr. SK Poddar and his son are not on good terms and succession planning of the company is at risk.

Final Verdict: I think I should take some position at this level.

I am very new to value investing and this is me taking random notes just for myself. Please don’t base any of your decision on these write-ups. That will be foolish.


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