Final dividend has to be credited within 42 days of AGM which was held on 24 August whereas interim dividend has to be credited with in a shorter period of its announcement.
Mayur is moving to next orbit
)- 2nd Unit to be shortly commissioned with 5th line .
)- On this unit 6,7 ,8th line can be commissioned one after another on the same unit using TUFS
)- All these newly lines would be catering to exports market resulting in better margins
)- Huge demand with production running in 3 shifts
)- Split will lead to better liquidity & interest
)- Instl interest now coming up
)- Excellent valuation & dividend yield giving good margin of safety
)- Big size of opportunity with superb ROCE of 50 + %
)- Ethical promoter with great execution track record
)- Classic small cap set to become large cap ala Lynch
I want to understand the influence of Rupee depreciation. AS per AR,
Raw material constitutes around 70-75% of sales. The
suppliers of raw material to the synthetic leather
industry are some of the biggest players in the world.
They set the prices based on the demand equation
and crude situation. The synthetic leather manufacturers
are completely dependent and vulnerable to raw
material price hikes. The good part of the price hike is
generally passed to the customers though with a lag.
Currently, the export constitute only 20% of the total sales. As per my understanding, raw material is bought in dollars. Is that correct? In that case company is a net importer?
The Dhodhsar plant, which is just 22 kms ahead of the Jaitpura plant, is already manufacturing knitted fabric which is the most important raw material of artificial leather and will also have 2 Italian coating lines with a capacity of 1.20 million linear meters per month. Our total capacity would then be 3.05 million linear meters per month. One line would be functional by Jan 2014 and other line by Jan 2015.
Mayurās 1 year returns are almost 40% now (slightly more than kaveri and avanti) and it feels like itās gone nowhere. Like itās said - sometimes the best shares to buy are the ones you already holdā¦ and patience pays !
Mayur Uniquoters limited has been included in the list of Inc. India 500 Indiaās Best performing Mid Sized Companies for the year 2013. The coveted list features the top 500 mid-sized companies in India.
Where can I find when Mayur reports its quarterly results? I was not able to find it anywhere till now? When is it planned for this quarter?
As some one who has invested long back in Mayur and has accumulated lucrative returns, but missed re-entry consistently! Is Mayurtrading reasonably given P/E > 10 for a some one with (2-3 years) horizon? I request seniorvalue pickersto throw some light on Mayur as there has been none now since long time!
Nov 12th is their quarterly result. You will find most of the old timers of ValuePickrs are long term investors in Mayur. Its more a āfill-it,shut-it, firget-itā kind of stock for me.
Whats the EPS estimate for Mayur Uni for next 2-3 years?
What should be the PE & can it improve in view of predictability & consistency shown in earnings,Ethical Promoter & their superb execution track record, huge size of opportunity,big ROCE,increasing exports leading to increasing margins, backward integration n expansion plans?
Nice to see you taking some real interest:), participating & asking questions. It may not always get answered promptly like Abhishek did - be a little patient.
1). Re: latest on Corporate actions on any company - like Dividends, Results
Bookmark this BSE webpage. Folks find this very useful
2). Re: Mayur Uniquoters
As Abhishek and every other astute senior will tell you, Mayur is an A category business in anyoneās portfolio - Thatās how much of a fill-it, shut-it, forget-it business it is - Thanks Abhishek.
Let me illustrate for Vamsi/and other learners what Abhishek means.
It means a certain predictability in business performance, financial prudence and ability to fund that growth in business performance, management vision and execution depth in tapping opportunities before it, meet and harness inevitable business challenges, while moving up the value chain.
Which means for me - I fully expect this kind of a business to grow at 20-25% CAGR for next 2-3 years or, double business performance in the next 3-4 years (Sales & Earnings)
a) I will ALWAYS RE-INVEST all the super-dividends the company keeps sending my way back in Mayur
b) I will keep making fresh allocations to Mayur (from time to time) as long as Valuations donāt shoot beyond what I consider reasonable valuations for it 10-12x 1 year forward. If anytime it falls below 10x it will be time for me to weigh loading up versus other opportunities - provided it doesnāt exceed 30% of my Portfolio by Value
With the caveat )- I have to keep track of developments/management-speak once every 3-6 months - above sanguine viewpoint may be modified if that consistency starts faltering, or we see evidence of contrary trends for 2 or more consecutive quarters.
There is no substitute to equipping yourself with all that you can know about a company - and thinking/wondering about the quality of this business versus others in your portfolio and outside of it. Once you have done that initial hard work - then keeping on investing in Category A business are NO-BRAINERS. Then just once in 3 or 6 months is all the amount of attention you need to give, maybe an hour or two!!
Leaving you free to ask searching questions of the next Category A business candidate/prospect in your portfolio.
How good are the 2nd generation of Poddars ? Do they have the same vision , ethical mindset, Fire in Belly, execution capabilities as that of Mr Poddar the founder?
These become v important criteria for any entrepreneur run co? Mr Poddar is now nearing 67-68 if I am not mistaken.
I took some initial position in Mayur some where in Janā13. (Though later it is realized from learning that proper time of entry & exit makes a big difference to your earnings & also it is depends upon some oneās investment type, short,med or long term)
From Jan up till August, it did not go any where but little downwards. (Again It was my expectation that it should go up only, forget that many times Patients pays :-)) I came out of it recently, once it started going up with marginal gains.
Though i was convinced about Mayur, but my reasons behind getting out of it majorly are,
a) Mayur gets significant amount of revenues from automobile industry, where as, lot of News talking about slowdowns in this sectorā¦
b) thought to re enter, once this sector start picking up, searchingā¦where is the bottom in this stock priceā¦?
c) lot of pessimism in the market, over all economy (though it is understood now, this is one of the right entry Point into stock market, depends upon someoneās nature of investment) again was trying to time the market, looking for, how far it will go downā¦where is the bottom?
But the recent Sensex rally, totally unexpected to my knowledgeā¦
My query on above points a,b
a) slowdown in auto ind. how much impact on Mayur? In general my query on businesses which depends on another primary industries such as Mayur on auto, Astral, Ceramic on real estate, etc. Iām trying to get answer to my queries from the results which these companies are delivering in these challenging environment, however appreciate seniors view on this.
b) is there any tactics which holds good to find the bottom.? Tech analysis?
Iāve started my journey into investment world only just this year, the discussions at valuepickr(VP) helped me enormously to understand the concept of investment in a better way.
I would like to thank you Donald, senior value pickrs, all fellow VPās. This is a forum having wealth of knowledge, quality of discussion, continuity of cooperation & colloboration & many many good things.
To me in simple words āLog into VP, leads to Learning & Earningā
Happy Diwali to all VPs!
Regards
Hashim
** With the caveat )- I developments/management-speak **
Although your question is for Donald, let me try to add a few thoughts here.
What you are trying to do is to time markets which is a very very difficult thing to do. Unless you are naturally gifted then you will over a long period figure out that you have lost more opportunities by trying to time your buys and sells than by simply holding on. There are a lot of psychological biases which kick in the moment you try to get into trading. First decide what your psychological preferences are - are you a trader at heart or are you a long term investor. The answer to that question will decide what you should do with your stock picks. Because they are actually mutually exclusive. You will pick up different stocks at different times if you are a trader vs a LT investor.
Back to Mayur & your questions:
Mayur has its revenue split between Auto & Footwear. Like I say always, every business is cyclical. Sometimes the cycles are longer than we care to track about. In Mayurās case, it tries to offset the cyclicality of Autos by getting more revenues from Footwear.
Every industry is dependent on some other industry. No business is standalone, self-sustaining in the world. Also, remember fundamentally, artificial leather as an industry is just kicking off, so you are on the starting part for long term cycle. Natural leather usage will go down and artificial leatherās usage will keep going up.
With all due respect to technical analysts, no one has been consistently able to spot bottoms, so stop wasting time there and focus on things which you can figure out like understanding the fundamentals of a business/sector etc.
Also, since you are saying you have just started, I would suggest you read as much as possible on investing. And try to read atleast one annual report in a week.
As long as opportunity size is great ,pricing power is there promoters ethics n execution capabilities are known stay invested . Wealth will be created automatically.
Many thanks for your quick response and needed elaboration After going through the threads of capital allocation I have decided to come up with my own valuation on Mayur as conviction has been always medium to high. So here is my first go at forward valuation for a company. (Kindly help me to figure out loopholes and improve at it!!)
Cornerstones:
I have tried to take yearly and rolling quarter approaches to counter check the results!
Growth prospects in the eye of increasing exports and crediblemanagement are taken in line 15 to 20%
All other key elements were adapted according to the past & considering their expansion plans
Questions/Doubts:
PE of 7 and P/Sales of 0,35 sound somehow looks too good for me to believe! (Errors in thought process?)
Calculating EPS, when Igoggledrecommended to take Weighted average when there has been split of share, which was the case here in Mayur in the current financial year. Is right to do so?
Thanks a lot for your comments which are worth to look at it seriously, when it comes to clear confusion in which way someone want to proceed in the stock market.
Of course I did not see my self possessing such kind of capabilities to predict/time the market, or other wise I would be around the so called great predictors hovering around any one of the TV channels Iām far better off the way Iāmā¦
What are the parameters does one check for the integrity of the management apart? Has anyone done any scuttlebutt on Mayur uniquoters. Please let me know.
The PE for the co is still in range of 12. Can the PE of co shudnt increase in view of
Consistency in earnings for last 16 quarters increasing every quarter.
Promoters who have walked the talk n have 75% stake.
Predictability in earnings
Great dividend payout every quarter
Pricing power as co has always passed on the cost may be with a lag of 1 qtras it caters to big growing footwear ,exports & OEM replacement market segment.Their customer want to deal with a co giving consistent quality ,variety in designs & scalability when required
Backward integration into knitting done leading to better margins
Increasing expansion mainly to cater to increased exports demand leading to better margins.There will be constant capacity addition in next 2 years.Pans are to go for for PU production as well.
Huge demand for product implying huge opportunity size . Co is working in 3 shifts for 28-29 days a month. Opportunity size seems so big & keeps on growing so that we have to do nothing but see our investment grow with each passing year
With issues like animal cruelty,pollution,low supply,& high price & wastage plaguing the natural leather industry the demand is augmenting for artificial leather .
Earlier inferior technology was 1 factor holding back the growth of artificial leather industry but now due to betetr technological advancements & betetr RM mix synthetic leather now produced is much smoother & similar to leather in look n feel.
Seems competition intensity is decreasing for Mayur in the organized segment as quality players dont want to take risk with inferior RM suppliers.Unorganized sector still 50% of whole market implying good growth potential.
Chinese competition threat reducing due to expensive currency & labour cost & pollution factors now big issue in China as well. This augurs well for exports as well as domestic imports
11)NOw 3 FIIS including Geomatrix Malabar India Fund owns nearly 2% of co from zilch 6-9 months back.CO crossing threshold in market cap could attract the attention of few more FIIs.
With so many strong character, ROCE of 70%, ethical promoter with big execution,huge opportunity size , the co being no 1 in India in synthetic leather segment, increasing instl interest shudnt the PE rise to 15 atleast.??
Max wealth is created when EPS n PE both rise.
Whats other friends target with this perspective? Views Invited,
Discl- Invested since long.Risks mentioned earlier in thread.
After going through the threads of capital allocation I have decided to come up with my own valuation on Mayur as conviction has been always medium to high. So here is my first go at forward valuation for a company. (Kindly help me to figure out loopholes and improve at it!!)