Mayur Uniquoters: Riding export momentum - Company Update

We maintain our BUY rating on Mayur Uniquoters with a revised target price of Rs. 825 (earlier Rs. 770), as we roll forward our valuation to Q3 FY28E and upgrade our FY27E/FY28E earnings estimates by ~4%. The company delivered a robust operating performance during the quarter, driven by strong traction in the export-OEM segment. Domestic performance remained steady, supported by the Auto-OEM segment, while an improving export mix and a benign raw material environment aided margin expansion. Management also outlined potential capacity expansion plans, including a PVC facility in South India and an overseas manufacturing facility under evaluation, providing long-term growth optionality while maintaining capital allocation discipline. We remain positive on Mayur, supported by strong export order visibility, a structurally improving margin profile, a healthy balance sheet and attractive valuations.

Export drives growth higher:

Revenue grew 14% YoY to Rs2.4bn, driven by strong performance in the export segment. Within exports, the OEM segment (~79% of exports) grew 93% YoY. Domestically, the auto OEM (37% of domestic revenue) segment grew 20% YoY, though this was partially offset by 2% decline in auto replacement and 10% YoY in domestic footwear due to competitive pressure. Overall volumes increased by 5% YoY OPM improved 93bps YoY to 23.4%, benefiting from a favourable mix of higher-margin export business. EBITDA rose by 19% YoY to Rs555 mn. PAT grew 66% YoY to Rs507 mn, supported by significant other income from forex gains. Excluding other inc., PAT growth was at 13% YoY.

Export OEM performance to maintain momentum:

The export OEM segment continues to remain the key growth catalyst for the company, supported by a strong uptick in demand from customers such as BMW South Africa and the addition of new clients, including Ford in the US. Management remains confident on the growth outlook for this segment, given the high entry barriers, strong customer stickiness and superior margin profile of the export OEM business, which is expected to continue driving revenue and profitability growth.

Outlook – Strong export momentum; risk-reward remains favourable:

The company currently faces no immediate tariff headwinds and continues to remain selective in lower-margin domestic categories, supporting margin sustainability. Management also outlined potential capacity expansion options, including a PVC facility in South India and an overseas manufacturing facility under evaluation, which provide long-term growth optionality while maintaining capital allocation discipline. With strong export visibility and limited near-term tariff risk, Mayur remains well positioned to deliver steady earnings growth over the medium term.

Valuation:

We are factoring in Revenue/EBITDA/Adj. PAT CAGR of 12%/13%/12% respectively over FY25–28E, supported by strong export momentum and a healthy balance sheet. We value the stock at 18x Q3FY28E EPS of Rs. 46, arriving at a target price of Rs. 825 and maintain our BUY rating. Key risks - sharper-than-expected slowdown in global auto demand, adverse trade policy changes over the medium term, and sustained competitive pressure in domestic non-OEM segments, which could weigh on volumes and margins.

Company website: https://www.mayuruniquoters.com/

*CMP is as per report published date

Click to download the full Mayur Uniquoters Ltd Q3FY26 Company Update

Analyst:

• Rahul Dani - Research Analyst, Institutional Equities (NISM-201500034725)
• Vaidik Bafna - Research Associate, Institutional Equities (NISM-202100035711)

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FAQs on Mayur Uniquoters Ltd Q3FY26 Company Update

These FAQs summarize key insights from MNCL’s institutional equity research on Mayur Uniquoters, highlighting growth drivers, outlook and key risks for investors.

1. What is MNCL’s rating and target price for Mayur Uniquoters?

MNCL maintains a BUY rating with a revised target price of ₹825, implying ~54% upside from current levels.

2. What is driving the company’s growth?

Growth is led by strong traction in the export OEM segment, which saw significant demand from global auto customers and contributed to higher revenue and improved margins.

3. How is the margin outlook?

Margins improved due to a favourable export mix and stable raw material costs. The company is also selectively focusing on higher-margin segments to sustain profitability.

4. What are the key future growth triggers?

Potential capacity expansion, including a PVC facility in South India and an overseas manufacturing unit, along with new global client additions, provide long-term growth optionality.

5. What risks should investors monitor?

Key risks include slowdown in global auto demand, adverse trade policy changes, and competitive pressure in domestic non-OEM segments.

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