ICICI Direct's research report on Mayur Uniquoters
Mayur Uniquoters (MUL) is a leading player in the domestic technical textile industry, manufacturing artificial/synthetic leather for a wide variety of applications viz. automotive (seat upholstery, inner linings), footwear (shoes/sandals insole, uppers), furnishing and apparel. It has the capacity to manufacture ~3.7 crore metre/annum of polyvinyl chloride i.e. PVC artificial leather & ~0.7 crore metre/annum of polyurethane (PU) artificial leather. It is a quality franchise with proven capabilities, which is highly capital efficient in nature, commanding strong double-digit margins and been a consistent CFO generator with net cash positive B/S.
Outlook
Increasing share of automotive business, stable crude oil prices, general focus on value addition and robust financials bodes well for MUL. Accordingly, we assign BUY rating to the stock, valuing the company at Rs 350 i.e. 20 FY20 EPS of Rs 17.6.
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