Anand Rathi has given Buy recommendation for Mayur Uniquoters with a target price of Rs. 610 in its research report issued on Sep 21, 2022
Anand Rathi’s research report on Mayur Uniquoters
Encouraging outlook. A healthy demand environment, raw material tailwinds and operating leverage would boost Mayur Uniquoters’ performance. Revenue growth boosted by automotive segment. Healthy increase in off take by Mercedes Benz, BMW and Volkswagen would lift utilisation at the PU plant. Also clients added and strong launch pipelines by OEMs assure sustainable growth for the next 2-3 years. The benefits of anti-dumping duty would be visible gradually. Solutions for mandatory airbags in all seats are being explored, and have not affected the business till now. Margin expansion likely. Easing input cost pressures and vigorous plans to scale up the high-margin furnishing and accessories categories would help gross margin expansion. Also, economies of scale would provide operating leverage to boost EBITDA margins.
We expect 25%/38% revenue/earnings CAGRs over FY22-24 and retain our Buy rating on the stock, at an unchanged TP of Rs.610 based on 15x (unchanged) FY24e earnings.