apparently edelweiss has an update on mayur post concall. Dont have details of either but found this on moneycontrol message board. Markets are so hot , valuepickr folks dont have time to look at old favs ! Looks a multibagger to me from here on as well.
Mayur Uniquoters Ltd. (MUL) reported good set of numbers for Q4FY14. Revenues grew by an impressive 25% YoY. EBITDA increased by 33% YoY and PAT stood at INR 19 cr, up 43.7% YoY, consolidating its strong growth story. MUL has been constantly increasing its presence of the domestic Auto OEM synthetic leather pie, with approvals from major Auto OEMs. Further, capacity constraints are expected to ease in FY15, positively impacting the topline going forward. MULâs foray into PU industry (which commands better realisation) and higher demand globally would also lead to strong revenue visibility going forward. The companyâs strong revenue visibility, strong RoE supported by strong cost control, better working capital management and negligible debt-equity ratio are positives for the stock. We believe that MUL can sustain CAGR of 22% in revenues and 26% in PAT over FY14-FY16E.
MULâs growth story intact
MULâs Q4FY14 numbers were impressive, with 25% expansion in topline at INR 470 cr. Auto OEM exports registered a 25.9% growth from INR 68 cr in Q4FY13 to INR 86 cr. General Exports saw 91% revenue growth from INR 11.65 cr to INR 22.25 cr. FY14 average realisations stood at INR 215/meter with reported average realisation of Auto OEM at INR 470/meter and General Exports at INR 184/meter.
The companyâs Gross Margin grew by 287bps on the back of a decline in raw material costs in view of the USD-INR appreciation. EBITDA in the quarter grew by 33% YoY to INR 27 cr with margins of 22.4%. PAT for the quarter grew by 43.7% YoY to INR 19 cr in comparison to INR 13 cr reported in Q4FY13.
Strong Client Addition continues
MUL has steadily increased its exposure to big Auto OEM players. It has received approvals and is named in the supplier list of Auto OEMs such as Ford India, GM India, Mahindra (for SUV500) etc. It is also a supplier to Ford Worldwide and Chrylser (USA). It intends to expand and double its presence in the global markets as a key supplier of synthetic leather.
Capacity expansion to ease constraints
MULâs current capacity stood at 2.45mn linear meters/month. The 6th line is expected to commence operations from October 2014. This line is expected to produce 600,000 linear meters per month, taking the total installed capacity to 3.05mn linear meters per month. The 5th line, which is currently operational on two shifts, is expected to operate on a 3-shift basis by September. With this, constraints on capacity would ease.Fully operational capacity is expected to generate revenues to the tune of INR 750-800 cr.
Foray into PU to drive growth, going forward
MUL has forayed into PU manufacturing. Global PU suppliers are dominated by Chinese manufacturers. The global market serviced by China is 10 times the size of the Indian industry. PU is lighter than PVC and is the preferred choice of synthetic leather users globally (exc. Auto OEMs). PU realization at INR 250-300 per meter is much higher than PVC realisation of INR 215 per meter.The current PU production is expected to commence with two lines, which would be scaled up to 6 lines by FY16. Each line is expected to contribute INR 90-100 cr incrementally.We expect MUL revenues to be boosted by its foray into PU. The capex requirement for Phase I (i.e. two lines) would be INR 70 cr.