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Systematix Report
Mayur Uniquoters Ltd. Q1 revenue after tax (up 22% YoY) was pushed by sturdy margins (gross 44.7%, Ebitda 22.6%) regardless of flat quantity (7.13 million meters) and 6% rise in income. Excessive exports (32%) and a superior product combine have been key elements.
Home enterprise contributed 68% to income, pushed by auto in addition to footwear segments. Newly added prospects drove exports. For FY25, administration has reiterated its sturdy progress steering of 15-20%.
Unique tools producer exports has sturdy order e-book to develop 2.5 instances in three years. Footwear section will take one other one yr to revive resulting from massive stock liquidation, submit BIS implementation. Total margins will enhance with better mixture of exports.
The present ~75% capability utilization offers ample room for wholesome progress over 2-3 years. Provide to BMW Thailand has began; South Africa will probably be added quickly and can increase income. MUNI plans to speculate Rs 2 billion to arrange manufacturing plant and warehouse in Mexico.
An identical arrange can be below planning for Europe to broaden enterprise there. PU enterprise will take one yr to achieve a scale. MUNI has introduced buyback of 500k shares (~1.1% fairness) value Rs 400 million at Rs 800/share. 23 August 2024 is about because the file date. After a wholesome 1Q, we maintained our earnings estimates.
After a muted 6%/6% compound annual progress fee in income/revenue after tax over FY19-24, we now anticipate a wholesome 16%/20% compound annual progress fee over FY24-26E, with 21%+ Ebitda margin and ~22%/34% return on capital employed/return on invested capital in FY26E.
Our estimates are primarily based on administration steering of wholesome restoration in FY25 and a robust bounce in FY26 (pushed by exports). Preserve ‘Purchase’ with the next goal value of Rs 800 (20 instances FY26E value to incomes, earlier Rs 720 at 18 instances). We see massive potential for extra re-rating if MUNI meets its steering
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