Mayur Uniquoters

Mayur Uniquoters reported a topline of Rs. 137.22 cr down 4.32% on Q-o-Q basis from Rs. 143.41 cr reported in Q3 FY20. EBITDA was at Rs. 32 cr with EBITDA margins improving 247 bps to 24.85% in Q4 FY20 mainly on account of better export OEM realisations. The company reported a PAT of Rs. 24 cr up 6.59% on Q-o-Q basis from Rs. 23.29 cr reported in quarter ended December, 2020. Mayur Uniquoters also recommended a final dividend of Rs. 1 per share for the quarter ended March, 2020 thereby bringing the total dividend declared to Rs. 3 per share in FY20.

Mayur Uniquoters sailed through subdued macro environment over the past two years by increasing their export sales. With the newly commissioned PU plant, the company forays into new phase of growth as it maintains its strong financial discipline. Commencement of Mercedes business in FY21 would further aid growth trajectory with other auto makers such as BMW approvals are in the pipeline. The company trades at moderate valuations of 12.76x FY20 earnings of Rs 79.7 cr however, multiple growth drivers such as commissioning of PU plant and increasing export OEM share would help company grow in double digits for next few years and a re-rating of the stock would follow. We opine to Buy on Dips with a target price of Rs. 300 valuing the company at 14x FY 22 earnings of Rs. 97 cr