New to the vp forum …
After reading a lot from this thread about Mayur uniquoters convinced about the stock and management ??
But want to know that whether I should buy at these levels and also when would be its Q2 concall ??
A recent interview in Outlook Business of Sumir Chadha, Founder of Westbridge Capital (a high pedigree long term excellent track record public market investor) where he covers his rationale for portfolio in detail including Mayur Uniquoters -
Mayur Uniquoters – unfair advantage over competitors:
We love Mayur Uniquoters because it is a clear market leader in artificial leather in India. They have the unfair advantage of having a very successful innovation engine that constantly designs new patterns and materials. Because of that Mayur charges a premium to its customers. It has also done fantastically on operational efficiency. The company runs its artificial leather lines 24 hours a day, seven days a week. In short, the company sweats its assets, runs very efficiently and keeps costs really low. When you talk to Mayur’s customers, you know it has a fantastic reputation. The customers just say, “Look, if you want the best quality in India, it is Mayur. You will get consistent quality of supply, and on-time delivery.” That combination of being innovative and superior execution is something that gives Mayur an unfair advantage.
The nice thing about Mayur is that the money we put into the company is going to result in a new polyurethane (PU) plant. Today, India imports PU from China. We have this very good promoter in Jaipur who needed our money to build a PU plant. We gave him $12 million and now next year the spanking new plant will be ready. It is pretty exciting.
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Flat Revenue but NP grows by 26%.
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There are rumors in the market that Mr. SK Poddar and his son are not on good terms and succession planning of the company is at risk. Investors who are watching this company and have attended AGM can comment whether they have heard or seen any of this issue.
Disc - invested
Q3 results are out. sales are down 9% but EBIT is up 23% and PAT is up 17%. Although employee cost and depreciation cost is higher, lower commodity prices benefit has helped Mayur to show great results on bottom line.
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http://www.moneycontrol.com/mccode/news/article/article_pdf.php?autono=5444821&num=0 AXIS REPORT ON MAYUR
The report seems completely off base. They expect 630cr turnover in FY16. In order to achieve that Q4 has to be ~250cr which is double the run rate when management has given flattish outlook. Similar issues with margins. Shoddy work.
Manav Poddar resigns as executive director from the company.
http://www.bseindia.com/corporates/ann.aspx?curpg=1&annflag=1&dt=&dur=A&dtto=&cat=&scrip=522249&anntype=A
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Thats a big setback for the co. Manav was a key person behind success of mayur imho. Its really sad .
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The Nov 15 rumor about the rift between promoters turned out to be true.
Good results from the company for the quarter
http://www.bseindia.com/corporates/anndet_new.aspx?newsid=6eff7046-5271-46fd-b1f9-71cb998eea93
Sales up 5%, PBIT up 44%, PAT up 28%. Debt reduced by 35% to 9.05 Cr from 13.75 Cr.
As economy improves and sales of footware/automotive goes up, Mayur would be major beneficiary of the boom
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Any news about the PU plant? Has the management taken any decision regarding shifting their plans from Rajasthan to an alternate state? Mayur doesnt seem to have done the concall too this quarter.
Stock seems to have stagnated for the last 2 years - although at 35x trailing PE in 2014, it was clearly overpriced. It has gone through an inevitable time correction. Bottomline and margins continue to grow, however top line remains stagnant as realizations have dropped a little and domestic volumes are not growing. Prospects continue to look bright however, the stock seems to be fairly priced.
If anyone has any updates, kindly let us know!
Disc. Invested.
Manav Poddar appointed back as additional director in Mayur a month after he resigned from the post of executive director!!!
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What was the reason behind his resignation? What are the chances of him continuing in long term?
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Please see interview of Senior Poddar on CNBC TV 18 today
In the end, he was asked about Manav Poddar’s resignation and rejoining. Mr. Poddar struggled to answer the question. He mentioned that Manav wanted to do something on his own but it seems father convinced him that “sky is the limit” in Mayur Uniquoters with the chance of his products getting worldwide approval from GM for one particular car. So father felt that he would need more hands to handle growing business.
It seems family has talked through the issues and found some amicable settlement. 
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Ajay Kumar Bagaria, the son in law is the ED and in control. The corporate site have no mention of Manav.
They are slow in updating the website. You can see the announcement in “investor” section under “announcements and press release” on Mayur’s website.
This episode does not give good feeling to investor. There was no reason for resignation and now for strange reason within couple of months we see him back in business !
While everyone is independent, but such behaviour raises concern in investor mind, specially you are minority partner.
I have exited from Mayur post this episode and my views may be biased to that effect.
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Mr Suresh Poddar’s comment was rather silly, in my opinion. Problem between Manav and Suresh Poddar had been ongoing for a while and they could not solve it before he stepped down, and then jumped back in within a month, makes the whole process and people involved look really stupid. Like Rudra mentioned above, the son-in-law is also in the picture and maybe a family saga is playing out. Focus may be more on slicing the pie than on growing it.
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Maybe someone residing in Jaipur has some local intel on the relationship factor within the family. Family tussles are difficult to hide no matter the coverup.