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Target Price

The Current Market Price (CMP) of Mayur Uniquoters Ltd. is Rs. 477. The brokerage firm, Sharekhan has estimated a Target Price for the stock at Rs. 670. Hence the stock is expected to give a +40% return, in a Target Period of 1 year.

Company performance

Mayur Uniquoters Ltd’s Q2FY22 results have beaten expectations, led by higher sales, price hikes, and operating leverage benefits, partially mitigated by increased raw material prices. Net revenues increased by 55.9% YoY and 65.9% QoQ to Rs. 196 crore, led by a strong recovery in sales in both domestic and export markets. EBITDA margin improved 570 bps QoQ to 20.6% in Q2FY22. EBITDA and PAT increased by 60.7% YoY and 47.9% YoY to Rs. 60.7 crore and Rs. 47.9 crore respectively in Q2FY22.

Comments by Sharekhan

According to Sharekhan, “We maintain a Buy on Mayur Uniquoters Limited (MUL) with an unchanged PT of Rs. 670, owing to positive business outlook and margin expansion.” However, the brokerage firm mentioned, “Stock is trading below its historical average multiples at P/E multiple of 14.2x and EV/EBITDA multiple of 8.6x its FY2023 estimates.”

About the company

MUL is the largest manufacturer of artificial leather/PVC vinyl, using the ‘Release Paper Transfer Coating Technology’ in India. The company has six manufacturing plants with a capacity of 3.1 million meters per month. The automotive segment is the largest contributor (57% of revenue), while the footwear segment contributes 35% to sales. MUL follows the OEM-based model with OEM contributing 75% to revenue. The domestic segment contributes about 80% to revenue, while the rest is contributed by exports

Disclaimer

The above stock was picked from the brokerage report of Sharekhan. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.

About Easy Trip Planners:

The company is the second leading online travel agency or OTA in the country. Incorporated in the year 2008, the company started off with focus on the business to business to customer (B2B2C) distribution channel and even to promote offline travel market provided travel agents with access to the company’s website for booking domestic flight tickets. Also, the company began catering to the B2C and B2E segment, thereby having at command a diversified customer base as well as broad-based distribution network.

No convenience fee strategy-

This has proved to be a big tailwind for the company- which led it to become the dominant player in the domestic air ticketing segment. The USP of Easy Trip with no convenience fee has stood as a game changer for the company and it is the only profitable company among major OTAs in the country. “While EASEMYTR has the largest agent network in the Indian OTA industry, it also ranks second in terms of air ticket volume and third in terms of gross booking revenue (GBR) and number of registered customers”, says the report.

Key takeaways

– Over Fy18-20, the online travel agency logged highest growth in air ticketing booking volume as well as air ticket gross booking revenue among leading OTAs in the country.

– In the B2C distribution network, the company has logged repeat transaction rate of 85.95%.

– The company during the review period delivered strong net

revenue/EBITDA/PAT CAGR of 19%/87%/91%.

– The company focuses on both inorganic route as well as acquisitions ((Traviate & Spree Hospitality) for foraying into newer segments.

Outlook and Valuation:

With no external funding since launch, Easy Trip built its business the traditional way – pay-as-you-go, by generating revenue and managing costs diligently.”With the recent post-IPO run up in the stock price, the stock trades at 41x/1.1x FY23E earnings and EV/GBR FY23E. For fast-growing companies whose earnings trajectory has not stabilised, we consider DCF-based valuation. Thus, we have valued EASEMYTR on DCF calculations and initiate coverage on it with a ‘BUY’ rating and target price of INR 733″, adds the brokerage.

Disclaimer:

The stocks has been picked from the brokerage report of Edelweiss. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.

Motilal Oswal’s take on Laurus Labs

According to the brokerage “Laurus Labs has signed an investment agreement with Immunoadoptive Cell Therapy Private Limited (ImmunoACT), an advanced cell and gene therapy company, for a 26.6% stake in the company (on a fully diluted basis) for a cash consideration of approximately INR460m, implying an enterprise value of INR1.7b.”

“The senior management would also invest INR98m in ImmunoACT for a 5.64% stake at the same price and terms. This investment would provide LAURUS access to CAR-T therapy, a promising treatment option with great success in the western world. CAR-T therapy is not available in India. This collaboration would help Laurus provide this novel technology to Indians at very affordable pricing. The current promoters of ImmunoACT would continue to lead the management and operations after the completion of the acquisition of the minority stake by Laurus” the brokerage clarified.

Motilal Oswal has also claimed that “CAR-T cell is a new therapy for Leukemia/Lymphoma, with USD1.5b in worldwide sales of five commercialized products. Given that ImmunoACT products are under development, the commercialization would be subject to a successful clinical outcome. However, this represents LAURUS’ entry for a potential CDMO opportunity into a new therapy space over the next 4-5 years.”

Buy Laurus Labs with a target price of Rs. 690

Motilal Oswal has said in its research report that “We expect a 21% earnings CAGR over FY21-23E, led by a 42%/30%/3% sales CAGR in the Synthesis/FDF/API segment and ~80bp margin expansion. We value LAURUS at 24x 12M forward earnings to arrive at our TP of INR690.”

According to the brokerage’s call “We remain positive on LAURUS on the back of a robust outlook for the Synthesis CDMO segment, with a strong client base, potential in the Biologics CDMO segment with capacity additions, product development/capacity additions in the Non-ARV segment, the healthy order book of the Non-ARV API business, and the potential opportunity from Molnupiravir sales in LMIC countries. We maintain our Buy rating.”

Disclaimer

The stock has been picked from the brokerage report of Motilal Oswal Financial Services Limited. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.