Mayur Unicoters, a prominent manufacturer of synthetic leather, has experienced a slight dip in its stock price by over two and a half percent amidst a weaker market sentiment. However, if one looks at the long-term trajectory, it has astonishingly turned an investment of 72,000 rupees into a millionaire fortune in just 15 years. Given this backdrop, market experts are bullish about its future prospects.
Tracking the stock’s historical performance, back on October 3, 2008, its share price stood at a mere 3.93 rupees. Fast forward to today, the stock trades at 552.25 rupees, translating to an impressive 13,952 percent rise in a span of 15 years. Notably, in the past year, the stock saw its lowest at 382.40 rupees on December 26, 2022. However, within eight months, it surged by more than 52 percent, touching a yearly high of 583.60 rupees on August 22, 2023. After reaching this high, there was a mild correction, and the stock declined by more than 5 percent from its peak.
Diving into the company’s core business, Mayur Unicoters specializes in producing synthetic leather, which finds applications in the automotive, footwear, and apparel sectors, among others. Interestingly, a significant chunk of its revenue, between 50 to 60 percent, comes from the automotive segment, while the footwear sector contributes another 20 to 30 percent. In the realm of automotive, the company is privileged to be among the suppliers for luxury global car brands such as Mercedes and BMW.
Domestic brokerage firm ICICI Securities holds a favorable view of Mayur Unicoters, citing strong growth prospects especially in the automotive sector. They have highlighted the company’s robust margin profile, efficient capital utilization, and a healthy balance sheet. As a reflection of their confidence, the brokerage firm has set a target price of 700 rupees for the stock, hinting at further upside potential.
