Buy Mayur Uniquoters; target of Rs 474: Anand Rathi
Anand Rathi is bullish on Mayur Uniquoters has recommended buy rating on the stock with a target price of Rs 474 in its research report dated February 14, 2021.
February 16, 2021 / 05:19 PM IST
Anand Rathi's research report on Mayur Uniquoters
With its user industries (auto, footwear) and its exports doing well, Mayur’s Q3 revenue/EBITDA/PAT were up 31%/78%/91% y/y. We are positive on it for its brighter outlook: 1) good demand from domestic auto/footwear incl. import substitution, 2) fast ramp-up at the PU plant (on ADD imposition) and 3) robust export opportunity via customers added (BMW, Mercedes, VW, etc.).
On the improving outlook, we expect 16%/19% CAGRs in revenue/PAT over FY20-23 after low 2%/6% CAGRs over FY14-20. After a significant de-rating of its scrip since FY18 on its declining earnings, we now see good scope for a re-rating, backed by strong earnings growth/better RoE. At ~13x FY23e P/E, we retain a Buy with a target of Rs474 (16x FY23e P/E).
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