Mayur Uniq

This company 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, Swaraj, LML, Nissan, LML, 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 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 Q1FY16, with net profit showing a YoY rise of 27% at Rs.19 crore. This was on a 4% rise in net sales at Rs.126 crore. EPS stands at Rs.3.49 (face value Rs.5). 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. Its raw material cost in current Q1 was down 8% YoY). 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.

The company converted 14.86 lakh convertible participating preference shares (CCPPs) of Rs.400 each into 29.72 lakh equity shares of Rs.5 each. Post this, equity capital of the company stands increased from Rs.21.65 crore to Rs.23.13 crore (QoQ). Promoters stake has come down from 66.42% to 61.12%. PE Fund, WestBridge holds 6.42% stake. 15 FIIs together hold 14.29%. DIIs hold 4.9%.