I have seen allocation to mayur decreasing in many of portfolios here. Can anyone comment on Mayur vs AmaraRaja/Cera/Ajanta/Astral. Mayur has become 30% of my portofolio. I was adding it since 240 (adjusted for bonus). I am wondering whether I should reallocate some amount to other opportunities. Help!
Q3/Fy-13 Results out…
Total Income up 15% to 93.83 Cr from 81.56 Cr.
EBIDTA up 20.6% to 16.19 Cr from 13.42 Cr.
Net Profit up 18.6% to 10.26 Cr from 8.65 Cr.
EBIDTA margin is 17.3% v/s 18% (SQ-12) and 16.5% (DQ-11)
NET Profit margin is 10.9% v/s 11.4% (SQ-12) and 10.6% (DQ-11)
Total Raw material costs as a %ge to Income is 72.4% v/s 74.3% (SQ-12) and 72.4% (DQ-11)
Employee costs to Income is 3.3% v/s 3% (SQ-12) and 3.6% (DQ-11)
Other expenses to Income is 7.1% v/s 4.8% (SQ-12) and 7.5% (DQ-11)
Tax Rate 31.4% v/s 32.1% (SQ-12) and 30.5% (DQ-11)
9M/Fy-13 v/s 9M/Fy-12:
Total Income up 24.2% to 282.35 Cr from 227.33 Cr (Fy/11-12: 317.48 Cr)
EBIDTA up 35.7% to 48.51 Cr from 35.73 Cr (Fy/11-12: 53.32 Cr)
Net Profit up 38.3% to 30.7 Cr from 22.2 Cr (Fy/11-12: 33.37 Cr)
Reported 9-month EPS 37.04 v/s 41 (Fy/11-12: 61.65)
(Note: Not sure if EPS adjusted w.r.t. Bonus shares issued)
On 11/02/2013, stock on BSE Closed at Rs. 482/-
(Results declared after market hours)
9 month EPS is not adjusted for bonus (look at paid up equity) So actually EPS is 37.04 vs 20.5 adjusted for bonus.
Small Adjustment…
Other expense includes Forex loss/gain as below:
Q3: Loss of 48 lacs; Q2: Gain of 2.12 Cr; Q3fy12: Loss of 1.53 Cr.
Adjusting this, EBIDTA will be up 11.5% to 16.67 Cr from 14.95 Cr. AND
EBIDTA margin will be 17.8% v/s 15.9% (SQ-12) and 18.3% (DQ-11)
Results are subdued as was expected and informed by the management in the previous conf call.
company has considered weighted avg equity for putting up eps numbers.
if one were to consider the current no of outstanding shares at 1.082 cr and calculate the eps for 9M fy 13 (not annualised) it comes to around 28.3 per share.
I think full year one can hope for eps figures of 40 plus.
Comparable EPS would be 28.3 vs 20.5
My expectation for full year is 42-43 eps. This quarter there would have been less productivity because of festivals as many of the workers would have been on vacation. This had been guided by the management earlier. Also the export will be sluggish in december as it is a lean period in most of US/Europe. The orders should start picking up this quarter and exports should be improving in the coming months.
Besides the knitting unit isachieving100% capacity in this quarter.
We would be able to clear it if the management conducts a concall as it did for the previous quarter.
| Mayur Uniquoters declares third interim dividend |
| Of 22.50% |
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| The board of Mayur Uniquoters at its meeting held on 11 February 2013 has declared third interim dividend of Rs 2.25 per equity share (22.50%) of Rs 10 each of the company. |
now this is something new for me. mayur has provided sales projections until fy15 on its website. it expects fy13 sales growth to be 20%, then 24% in fy14 and 15% in fy15.
That is a projection of 20% growth over two years. What is interesting is higher growth projected for 2013-14 compared to current year. This implies an EPS of about 60 in 2 years.
a positive surprise would be a revision in estimates for FY15 on upside …this is sign of a successful company
Concall details
The sales for Q3 FY 13 has been 94.5 crores. Net profit of 10.26 crores. Domestic growth is 6%. Mayur compensated this with high exports. The company should maintain the same runrate in Q4.Targetingto better this.
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Highlights
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For FY13 - 9 months the
**Automotives constituted - 35% of total revenue
The exports were 64.59 crores -9 months.
Expecting 80 crores for full 12 months. FY12 exports were 51.28 crores
The latest cash in BS - 20 crores.
Receivable days = 40- 42 days
5th line is expected to go online in the 2nd half of FY 13 . delayed by 3-4 months.Reason being they are going for complete mechanization which will enhance optimization and efficiency
For Q3 - capacity utilization is 90%. Plant was not functional for 5 days because of deepavali. Workers went to native and this affected the capacity utilization.
No threat from chines imports since it caters to unrganized sector. Mayur caters 95% to organized sector,
Knitting unit commenced and 10 machines installed out of targeted 14. this will be done in another 2 weeks. Capacity to add till 35 which will be added gradually one or two in a month from 2nd half of this calendar year.
The total cost for knitting unit is 25 crores as of now. Upgrading to all the 35 machines will not take another 5-6 crores.
This would help in reducing rejections and enhance the quality from 1Q FY14 which will indirectly benefit in profits. There is no major profit expected from this unit directly for the next 2 years. Expecting profit from the third year from this knitting unit directly.
Working capital requirement is only 30 crores for mayur.
No negative impact of GST.
Currently supplying to Ford/Chrysler. bullish on more exports to them in the coming quarters with more programmes withenhancedcapacity. Settled with Mercedez and the order expected in 3-6 months. very confident of achieving the same.
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All major footwear suppliers increasing their capacity which should benefit mayur.
domestic consumption growth very low. Expect to be the same for one or two quarters. Markets sentiment low and no spending happening.
Target 150- 200 crores of export alone in another 3- 4 years.
concentrating on furnishings and expect significant presence there too in the coming years.
Some calculations on meter usage for ford/chrysler and expectations in the years
3-3.5 metres used per vehicle. Some use 1-1.5 metres
currently 35k-40k vehicles per month.
targeting another 30k-40k vehicles per month. Depends on the vehicle whether it uses 3 metres or 1.5 metres .
Kindly let me know if i have missed anytthing or misunderstood anything which needs to be corrected.
5th line was expected to go operational from Dec’13…now delayed by 3-4 months …say March’14.
I am a bit confused about EPS calculation. you say that your expectation for full year EPS is 42-43.
The results say that the 9 month EPS is 37.04 for 108.264Lac shares.But if I divide 9M net profit 3069.83Lac by number of shares 108.264Lac, you get an EPS of 28.35.
Similar calculation for this Q gives EPS 9.47 but statement says 12.38
isachieving100%
shares.But
There is some issue with the statement. The 9 months profit is 30.69 and the eps stands out to 28 odd. I was expecting profit of 15 crores for the Q4 (30% more than Q4 FY12), which should translate the eps to 42-43. This seems a challenge to reach in the current scenario as the domestic growth has been in low single digits(as specified in the concall) and should take some time to recover. However the fundamentals remains good.
Alright. I was really confused. I guess they will not do more than 36-37 for the full yr.
I hope things pick up in next couple of quarters. BTW…stock down 5% today.
shares.But
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There good.
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Hitesh Ji,
Is Mayur a good buy at cmp-443? 150 DMA is 414…
I think the stock went ex dividend today. Funnily I have often seen that if mayur goes ex dividend by rs 2.5, the stock goes down by rs 15.
Regarding entry point, I think based on current market mood, one can add in a staggered manner as small caps are bearing the brunt of damage.