Growth Story about Mayur Uniquoters - Buy
Mayur Uniquoter was established in 1992 by S.K. Poddar, manufactures Synthetic leather at jaipur with an installed capacity of about 1.2 million linear meters/month. Compan
Clientele based of the company has many big names. Automotive OEM exports have begun in FY11 to GM & Chrysler. Other international OEMs like BMW, Mercedes and Ford have put the company on the approved vendor list, and orders are awaited. Major customers include Bata, Liberty and Action in Footwear and Maruti, Tata Motors, GM in Automotive segments.
Company has made solid development over preceding 5 years. The company has approximately tripled its sales to reach Rs.176 cr in FY10 and EPS has gone up roughly 6 times in the same period. Sales have grown at 30% CAGR while EPS on an adjusted basis has grown at over 57% CAGR.
The company is having a very good financial position. Company is high on margins and it is operating in the industry in which the major part is unorganized. Company is focusing on the products which are high on margins and company is quitting the business which is less profitable. Company is focusing on TQM which gives better quality which helps to take the advantage over its competitors to capture overseas market and domestic as well.
Company has expansion plans and it has stated that by the end of dec’10, company will be producing 1.4 million/ per month and by the end of sep’11 company will be producing 1.9 million/ per month. Company has projected an increase in total sales by almost 28% and where as it has expecting an increase of 109% in exports. The company is growing QOQ and YOY with a phenomenal rate.
In FY10, Company has posted 167% increase in EPS over last FY. CAGR of EPS for the last 5 years is almost 57%. This shows that company has regularly improved its margins and the return to its shareholder has also increased phenomenally. CAGR of DPS for 5 years is almost 52%. The company has done excellently well. Talking about the ROA, ROE and ROCE Company has posted 34%, 38% & 57% respectively for the FY10. This shows the efficient management and the return which is being generated by proper utilization of its assets. Share holders are also getting return in terms of dividend and the company has proven over the years about its fundamentals.
Company is trading at a P/E of 8 around and if I discount of the forward earnings then company is available at a P/E of 5-6. This can be an ideal pick for the investors. This is having the growth potential with future plan and expansion of capacity. Company is planning to grab more market of overseas which will result in better margins and the company will get a much higher valuation. Go for it!!!
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