NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Systematix Report
Mayur Uniquoters Ltd.'s Q3 came weak (revenue flat YoY and down 12% QoQ, gross margin expanded 45 basis points QoQ, Ebitda margin contracted 123 bps QoQ at 19.8%).
Revenue was impacted due to weak demand for footwear (down 18% YoY; intense competition) and the auto replacement segment; exports volume grew 27% YoY. Auto replacement demand remained low since the govt’s additional airbag mandate for backseat.
Mayur Uniquoters existing order book for new models of global original equipment manufacturer makes management upbeat on growth momentum accelerating. Focus remains on margins over volumes; the company is adding -added products (marine etc.).
Expansion of its business-to-consumer vertical by selling furnishing products directly to retailers (aims to grow to 1,000 in a year from ~350 currently) and its pan India distribution too is on the cards.
Discussion with Zara is also at an advanced stage. After a likely flattish revenue in FY24, management aims healthy recovery in FY25 and a strong bounce in FY26 driven by exports business.
We introduce FY26E and expect 12%/12%/20% compound annual growth rate in revenue/Ebitda/profit after tax over FY23-26E with Ebitda margin and return on capital employed at 22% each in FY26E.
Maintain 'Buy' with a lower target price of Rs 608 (earlier Rs 619) at 15 times FY26E earning price. Strong earnings and superior return ratios are key valuation re-rating triggers.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
As a Subscriber you get
Stories
RECOMMENDED FOR YOU
Latent View - Muted FY24; Rebound Expected In The Medium Term: Systematix
May 13, 2024
Relaxo Footwears Q4 Results Review - Gradual Recovery To Continue; Maintain Buy: Axis Securities
May 13, 2024
Shoppers Stop Q4 Review - Soft Earnings Continues; Focusing On Beauty, Intune: Motilal Oswal
May 02, 2024
Craftsman Automation Q4 Results Review - Weak Quarter, Gradual Recovery Likely From Q1 Onwards: Motilal Oswal
Apr 30, 2024
POPULAR