Thread by @phoenixcapindia

#MayurUniquoters - Largest Player In Indian Synthetic Leather market scripting a turnaround available at an attractive valuations.

Market Cap : 1200 cr
CMP : 262

Market leader in Synthetic Leather foraying into PU (Polyurethane) leather business which is dominated by #Chinese Imports

With the recent health scare due to #CoronaVirus global customers have realized the importance of non-dependence on single country for its RM

Synthetic leather finds its application in Automobile Seat Covers, accessories, roof linings & footwear.

China’s #marketshare to global trade in Synthethic Leather is 26% vs India at 5%. Total import from #China is around 3,500 cr and 20 mn meter/month.

PU can be a game changer - Due to high customization, pricing & quality threat of unorganized is very low in #PU vs #PVC

Commercial Production of PU starts from Q3FY20. First phase of production consists 1mn meter/month capacity with #capex of 120 cr and can reach reach a topline of 200 cr at peak utilization.

Existing capacity of 3.05 mn meter/month is mainly in PVC Leather.

Global Partners - Company has all major approvals to supply synthetic leather to markets like US & Europe. The company already has partnership with #Ford, #Chrysler, #GM and #Daimler.

Mayur is approved vendor for all these players.

Revenue Split - Export segment is higher margin business, contributes 18% of revenue & 30% of EBIDTA. Revenue Contribution, Export 25% & Domestic 75%.

Financials -Strong Operating Cash Flow track record, debt free in spite 120 cr capex. Net Debt of -250 cr. At 16 PE trailing company is at 10 year average multiple. Current market cap of 1200 cr, we have a PAT target of 110 for FY22, it is available at an attractive valuation 11x