Mayur Uniquoters looks attractive: Arun Baid

Arun Baid - Vice President- Research at Religare Capital Markets told CNBC-TV18, "In this quarter Mayur Uniquoters actually grew at volumes terms by 8 percent but the topline growth was only 4 percent. The reason is commodity prices have come down, so going ahead this will neutralise. Second thing is, in this company about 50 percent of the revenues come from footwear and another 40 percent odd comes from automotive industry. So both these industries haven’t seen the best of times. Footwear market has slowed down to some extent, again raw material prices have come down.""On the automotive front, they are the only company from India who is exporting to US original equipment manufacturer (OEM) players. They have a few approvals there. Also a few domestic approvals which has come through recently should help the automotive growth. They are doing very well in replacement market which we believe should drive growth. Again they are getting into a furnishing which was not the market they used to cater to and that can be a huge growth opportunity for this company," he added."On the margin front if you look at this company, this company has grown its margin phenomenally, used to be a 14-15 percent margin company five years ago. Now it is over 22 percent for this year we believe, so they have been able to do that on margins that is more because of backward integration and their ability to come up with new and new products.""We do believe that this company looks very attractive for a longer-term perspective. Whenever the domestic recovery picks up to some extent they will be a big beneficiary. Mind it that they have 25 percent exports, so they are also beneficiaries of what is happening with the currency at the same time they are getting in new markets which will help their growth," he said.