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Last Updated : Jul 03, 2020 02:25 PM IST | Source: Moneycontrol.com

Buy Mayur Uniquoters; target of Rs 283: Anand Rathi

Anand Rathi is bullish on Mayur Uniquoters has recommended buy rating on the stock with a target price of Rs 283 in its research report dated June 30, 2020.

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Anand Rathi 's research report on Mayur Uniquoters

Driven by auto OEM exports (up 76% y/y), Mayur’s Q4 was strong: revenue/PAT up 13%/34% y/y, the EBITDA margin a healthy 25.7%, aided by a superior sales mix. An uptick in auto sales since Dec’19 helped. After re-opening, Mayur has seen good traction in exports during May-Jun’20 while its domestic business is improving gradually. In FY21, we believe exports will do better than the domestic market and be a cushion to margins. At ~9x FY22e P/E, we find the valuation appealing.


Thus, we maintain our Buy call, with a lower target of `283 (12x FY22e P/E), earlier `311. The stock has been considerably de-rated in the last 2-3 years, factoring in declining return ratios and delay in the PU plant/approval from Mercedes-BMW. Thus, a rapid ramp-up at the PU plant and strong exports may lead to a re-rating in the stock.

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First Published on Jul 3, 2020 02:25 pm