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CD Equisearch
Mayur Uniquoters (Accumulate)
CMP: ₹436
Target: ₹475
India’s focus on ‘Make in India’ is a significant step, which has given boost to various automobile manufacturers to open up their manufacturing facilities in India. Auto companies are exploring India as a hub for setting up manufacturing facilities to meet their export demand. With the existing export to US automobile industry, Mayur has a rich experience in making premium products. Recently, Ford and GM in India have stopped using synthetic leather imported from China and started buying from Mayur. With more and more models approving Mayur products it expects to achieve good growth in future. Domestic automobile industry is also moving towards premium models and adding Mayur in their vendor list.
Recently, demand for premium quality of synthetic leather has increased tremendously. As there is a rise in living standard, demand for the premium and value added products will continue to rise. The strategy of Mayur focussing on premium products and making supplies only to branded names will benefit it going forward to capitalise the demand for premium quality of synthetic leather.
The share of exports in the total turnover of the company has increased consistently to 26.07 per cent in FY15 from 19.43 per cent in FY11. It is expected to grow at 20-25 per cent in coming years. Strong operating margins and foray into export sales can lead to strong volume growth in FY17.
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