Expect to get orders from Mercedes by Q1FY19. May add 100-200 Crs in 2 years. Potential to tap into other German auto companies. US Auto industry is doing well. Sixth line can be added for additional 0.7-0.8 M mtrs capacity.
Margins in export 10% higher than domestic.
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They are saying this since so many years…if you go to transcript and interviews few years back you can easily verify this.
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Another buy back coming soon, hopefully we will have more details on this along with the Q2 results this week.
This stock is at a stage where any announcement is being interpreted with a healthy dose of skepticism and commentary on the lackluster show by the promoters over the past three years. Was a no brainer at sub 350 levels, managed to add to my existing holding. Let’s see what Q2 has in store
I also think that this is the reason behind the stock trading low in the recent times. The rift should be resolved soon for the good of shareholders.
Good article on Mayur in Outlook Business
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Found an interesting summary on Mayur Uniquoters. Most of the content is already discussed in this forum.
Thanks @Ravichand08
Discl. Invested at lower levels
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Mayur Uniquoters - Board declares Second Interim Dividend & approves Buyback of Equity Shares.
The Board approved and fixed, Saturday, 02nd December, 2017 as record date for the payment of Second Interim Dividend and for the purpose of Buy back of Equity Shares of the Company
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Declared Second Interim Dividend of Rs. 0.25 per equity share (5%) for the financial year 2017-18.
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Approved the Buyback up to 4,50,000 fully paid up Equity Shares (Four Lakhs Fifty Thousand) of the Company for an aggregate amount not exceeding Rs. 24,75,00,000/- (Rupees Twenty Four Crores Seventy Five Lakhs only) (the “Buyback Size”) being 0.98 % of the total paid up equity share capital, at Rs. 550 (Rupees Five Hundred Fifty only) per Equity Share (the “Buyback Price”). The Buyback is proposed to be made to all existing shareholders of the Company on the Record Date, on a proportionate basis under the tender offer route in accordance with the provisions contained in the Securities and Exchange Board of India (Buy Back of Securities) Regulations, 1998 (“Buyback Regulations”) and the Companies Act, 2013 and rules made thereunder. The Buyback Size does not include any expenses incurred or to be incurred for the Buyback like filing fees payable to the Securities and Exchange Board of India (“SEBI”),advisors fees, public announcement publication expenses, printing and dispatch expenses and other incidental and related expenses.
For more details :
http://www.moneycontrol.com/stocks/reports/mayur-uniquoters-board-declares-second-interim-dividend-approves-buybackequity-shares-9947781.html
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Since buy back price is set at 550/-, is this share expected to move up?
This is my personal opinion:
At the first glance, this buy back is a “me too” one, without any purpose, other than handing over some money to promoters without getting them a blame of market sell off. The retail investors are not getting benefited due to proportionate buy back. Not sure whether there is a part reserved for retail investors (not clear).
- The buy back is a minuscule percentage of the share capital. No great effect on earning ratios at this point.
Hate to discuss the price here, to be honest, neither the results nor the buy back offer appears to have any positives in terms of market valuations in the interim. The future potential looks promising.
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Thank for more details on this buy back
Hi @adityajp
It could be considered as a 1% dividend instead of a buyback and will be proportionate as even the promoter would have got a dividend if they had paid out a larger percentage as dividend instead of the small token dividend. The reason is, from last year, long term investors have started being charged a dividend tax if the dividend income of the investor is over 10 lacs a year.
So going forward, many companies may prefer to do a buy back of around 1-2 percent of their shares every year instead of giving a major dividend and let the shareholder decide if he wants to sell some shareholding for their needs. These are mostly senior citizens getting affected, so this is a way for the company to take care of the long term shareholders. Most of these people would anyways use the spare from the dividend minus their needs for to buy more shares of the company that paid the dividend so it solves many issues.
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any idea of the buyback entitlement ratio for retail in the last buyback?
what would be impact of this announcement on Mayur… My guess is more negative than positive for Mayur since they compete with natural leather
Q3 result:
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@Donald , @hitesh2710, @nidhijain, @basumallick, @CHINKI
Hi guys , you have done a great deal of work here. I heard about this company in December 2017, did my own analysis and then saw this thread on VP. (It would have saved me alot of time if I would have read this post first.) Everything looks good but i have a few questions incase you guys are still following this company. If anyone else knows pls chip in.
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when I read your posts from 2011, you had mentioned that the company is on the approved list at BMW in 2011. There are still no orders from them. Do you know why? The company still mentions BMW & merc as an opportunity. (7 yrs!!!)
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westbridge sold their entire stake in 2 yrs. Very unlike their investment style. Do we know why they exited? They just made a 12% return over 2 yrs!! Why did they sell in a hurry? (They had better access to information. I wonder wht did they see)
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any update on the father-son relationship?
I have more questions. Will post.
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Hi Gaurav - i have not kept up with the company. I can take a look, please
give me a week to take a look, and i will get back to you.
Nidhi
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My take is that the company removed their eyes off the ball because of their internal issues (father/son/son-in-law) and nothing much moved in the company for an extended period. BMW and larger orders from Mercedes can be safely ignored unless they actually materialize.
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No clue on Westbridge or any other investor. Any investor would have their own reasons for buying and selling. I would not focus a lot on transactional information.
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Son seems to be out and son-in-law is currently in. But like a TV soap opera, don’t know if this is an intermediate status or permanent one.
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Westbridge has sold the majority of their public market investments, you can see this across their other holdings like Greenply, Cera, Kajaria, AIA, Havells etc. They have been in the exit public markets mode for quite some time now, so do not look at their exit from Mayur in isolation.
Even if their exit from Mayur was due to the investment not working out, how does that impact your/my call on this? If anything my experience has been that we retail investors can do better than large funds in a lot of aspects
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