🟡 At a Glance
A synthetic leather kingpin that supplies to global auto majors, Mayur Uniquoters has quietly stitched together a profit recovery while investors focused on flashier FMCG names. From sluggish domestic growth to a sizzling export engine, Mayur’s journey is more than just PVC and PU—it’s a full-blown ROCE revival.
📦 1. Business Model: Artificial Leather, Real Aspirations
- Mayur manufactures PVC & PU-coated fabrics, with 400+ variants.
- Application spread:
- 👞 Footwear (largest segment)
- 🛋️ Furniture and furnishings
- 🚗 Automotive OEMs (domestic & export)
- 👜 Fashion & accessories
- Operates under B2B model—no direct brand play (except furnishings under Texture & Hues).
- Exports to global auto giants like Ford, Chrysler, BMW, and GM.
So basically: If your car seat feels like leather but costs half, chances are it’s Mayur.
📈 2. 5-Year Financials (FY20–FY25)
| Metric | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|---|
| Revenue (₹ Cr) | 516 | 501 | 631 | 764 | 764 | 820 |
| EBITDA (₹ Cr) | 107 | 120 | 114 | 144 | 156 | 181 |
| EBITDA Margin (%) | 21% | 24% | 18% | 19% | 20% | 22% |
| Net Profit (₹ Cr) | 81 | 89 | 84 | 107 | 120 | 141 |
| EPS (₹) | 17.79 | 19.97 | 18.92 | 24.45 | 27.20 | 32.08 |
| ROCE (%) | 18% | 18% | 16% | 18% | 19% | 21% |
📌 Despite flat revenue in FY24, profits grew 17.7%, thanks to rising exports and better mix.
🧵 3. FY25: Export Mojo & Margin Glow-Up
Mayur’s Q4 FY25 had:
- 📈 Sales: ₹214 Cr
- 💰 Net Profit: ₹35 Cr
- 🧮 OPM: 21% — highest in 12 quarters
Export orders picked up significantly, especially from US-based auto OEMs.
- Analyst call guided 15–20% profit growth in FY26
- Also exploring new geographies in Europe & ASEAN
Meanwhile, their Indian operations (footwear + furniture) stayed sluggish.
💸 4. Balance Sheet & Cash Flow
- Almost debt-free: Just ₹9 Cr borrowings on ₹1,046 Cr assets
- Cash from ops in FY25: ₹159 Cr
- Invested ₹68 Cr—mostly capex for automation & backward integration
- ROCE improved from 16% to 21% in 2 years
👀 Working Capital Days: 232 (ouch), due to high inventory & slow payers.
🛡️ 5. Management, Promoter Moves & Shareholding
- Promoter holding: 58.59% (steady)
- FII stake: rising from 1.3% → 3.34% over 3 years ✅
- DII stake falling—institutions haven’t fully bought the export growth story yet
👔 KMP: Ajay Agarwal (MD) has been laser-focused on exports and premiumization. No major pledging or insider drama.
📊 6. Valuation & Fair Value Range (FY26E)
- CMP: ₹558
- FY25 EPS: ₹32.08 → Likely FY26 EPS: ₹36–38
- Assigning fair P/E: 18–20x (based on avg of last 5 years and peer group)
🎯 Fair Value Range = ₹648 to ₹760
| Case | EPS (FY26E) | P/E | Target Price |
| Base | ₹36 | 18x | ₹648 |
| Bull | ₹38 | 20x | ₹760 |
🧠 EduTake: Stock is reasonably valued at 17.4x trailing P/E, with a margin upgrade cycle and export kicker in play.
🤔 7. Edu Verdict: Real Leather? No. Real Value? Maybe.
- ✅ Near debt-free
- ✅ Consistent profit growth
- ✅ ROCE improving
- ❌ Domestic growth weak
- ❌ Working capital bloated
Bottomline? If Mayur Uniquoters were a couch, it would look premium, feel soft, and probably last 5 years — but you’d still check if it’s made in China.
🎯 If exports keep rising and margin discipline holds, this stock could deliver 15–20% CAGR with low volatility.
✍️ Written by Prashant | 📅 19 June 2025
Tags: Mayur Uniquoters, Artificial Leather, PVC Exports, Auto OEM Suppliers, Smallcap FMCG, EduInvesting Recap, Fair Value Range, Debt-Free Stocks, ROCE Growth, Leather Sector
