Mayur Uniquoters Q1 Results Review - Strong Margins Drove Pat; Many Levers For Re-Rating: Systematix

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. Q1 profit after tax (up 22% YoY) was driven by strong margins (gross 44.7%, Ebitda 22.6%) despite flat volume (7.13 million meters) and 6% rise in revenue. High exports (32%) and a superior product mix were key factors. Domestic business contributed 68% to revenue, driven by auto as well as footwear segments. Newly added customers drove exports. For FY25, management has reiterated its strong growth guidance of 15-20%.Original equipment manufacturer exports has strong order book to grow 2.5 times in three years. Footwear segment will take another one year to revive due to large inventory liquidation, post BIS implementation. Overall margins will improve with greater mix of exports. The current ~75% capacity utilization provides ample room for healthy growth over 2-3 years. Supply to BMW Thailand has started; South Africa will be added soon and will boost revenue. MUNI plans to invest Rs 2 billion to set up manufacturing plant and warehouse in Mexico.A similar set up is also under planning for Europe to expand business there. PU business will take one year to reach a scale. MUNI has announced buyback of 500k shares (~1.1% equity) worth Rs 400 million at Rs 800/share. 23 August 2024 is set as the record date. After a healthy 1Q, we maintained our earnings estimates.After a muted 6%/6% compound annual growth rate in revenue/profit after tax over FY19-24, we now expect a healthy 16%/20% compound annual growth rate over FY24-26E, with 21%+ Ebitda margin and ~22%/34% return on capital employed/return on invested capital in FY26E.Our estimates are based on management guidance of healthy recovery in FY25 and a strong bounce in FY26 (driven by exports). Maintain 'Buy' with a higher target price of Rs 800 (20 times FY26E price to earning, earlier Rs 720 at 18 times). We see large potential for more re-rating if MUNI meets its guidance.Click on the attachment to read the full report:.Natco Pharma Q1 Results Review - Setting The Stage For A Strong FY25: ICICI Securities.DISCLAIMERThis 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.

Mayur Uniquoters Q1 Results Review - Strong Margins Drove Pat; Many Levers For Re-Rating: Systematix

The current ~75% capacity utilisation provides ample room for healthy growth over two-three years, says the brokerage.

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