Mayur Uniq

It is one of the leading manufacturers of artificial leather/PVC Vinyl with a capacity 1.85 million linear/month and is currently operating full throttle at full capacity. The company has made a niche for itself by concentrating on providing quality leather to auto (upholstery), footwear and furnishings sectors, giving it better margins and beating intense competition from the unroganised sector. Many leading Automotive OEMs like Ford, Tata Motors, Chrysler, Maruti, M&M, Honda Motorcycles BMW, and Daimler have the company on their approved vendor list. This is the only Indian company to get a foothold in the international auto sector. It recently allotted a 1:1 bonus and the equity now stands increased at Rs.10.82 crore. An almost debt free company, it is also a supplier to leading footwear manufacturers like Bata, Liberty, Action, Paragon. Even in the replacement market it has made a good base for itself.

The company has put up a good performance for Q3FY13, with net profit showing a YoY rise of 17% at Rs.10.26 crore. This was on a 15% rise in net sales at Rs.92 crore. The company has integrated backward to make synthetic knitted fabric which is a huge raw material apart from chemicals like PU and PVC. This gives the company excellent quality of fabric, brings down its own procurement cost and more importantly, will get more market share in export as well as domestic market due to lower rejects thus increasing the margins. The capacity of the company is presently at about 19 lakh meter/month of this artificial leather which will get ramped up to about 21-22 lakh/meter post this backward vertical integration. For 9MFY13, the company posted a net profit at Rs.31 crore compared to Rs.33 crore for FY12. Annualised EPS stands at Rs.49.39 which is after 1:1 bonus and its equity rising from Rs.5.41 crore to Rs.10.83 crore. The strong fundamentals suggest that the stock can scale Rs.500 by end of FY13 and even a target of Rs.800 in about 12-18 months from now does not seem far-fetched.   Promoters stake as at 31st Dec 2012 stood at 74.96%.