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This multibagger stock has gained more than 8,000% in 10 years; Do you own it?

This multibagger stock has gained more than 8,000% in 10 years; Do you own it?

The stock is trading above its 50-day moving average and 200-day moving average of 486.40 and 484.85 level. The stock's return on assets stands at 15.30% on the basis of trailing twelve months. Similarly, its return on equity comes to 21.89%.

BusinessToday.In
  • Updated Apr 27, 2018 4:11 PM IST
This multibagger stock has gained more than 8,000% in 10 years; Do you own it?

The stock of artificial leather manufacturer Mayur Uniquoters has risen 8,361 percent during the last 10 years. This multibagger stock touched its all-time high of 568.15 level on January 15, 2018 amid the market rally which took benchmark Nifty and Sensex to their life-time high levels. Multibaggers are stocks which are undervalued and have strong fundamentals, thus becoming valuable offering for investors in the equity market. These are stocks that deliver returns that are several times their costs.

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It closed 0.80% higher at 504 level on BSE. Its market capitalisation at the end of trade today stood at Rs 2284.51 crore.

The stock has moved up 24.53% during the last one year.

The stock is trading above its 50-day moving average and 200-day moving average of 486.40 and 484.85 level. The stock's return on assets stands at 15.30% on the basis of trailing twelve months. Similarly, its return on equity comes to 21.89%. The firm reported 0.10% percent rise in net sales to Rs 137.99 crore for the quarter ending December 2017 on a quarter-on-quarter basis.

Its net profit fell 3.38% to Rs 21.75 crore for December quarter compared to Rs 22.51 crore net profit for the quarter ending September 2017.

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Brokerage CD Equisearch has given "accumulate rating" to the stock this month with a revised target of Rs 561.

The brokerage in a note said, "Mayur reported a 16.3% growth in its revenues in 9MFY18 galvanized by the recovery of economy, essentially the footwear and automotive sectors. The company is confident of getting approvals for orders by Mercedes Benz in FY19 and has been modifying its process to grab such approvals. This would doubtlessly accentuate greater exposure to other prospective customers in the European market.

In view of vigorous recovery of sales in Q2 and Q3, we revise our FY19e EPS by 14.9% and assign 'accumulate' rating on the stock with a revised target of Rs 561 (previous target: Rs 444) based on 22x FY19e EPS (peg ratio: 1) over a period of 9-12 months."

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The company's products are used in the manufacture of shoes, garments, luggage, sports goods and upholstery, and are used as a substitute for real/natural leather.

Mayur Uniquoters was incorporated as a public limited company in 1992. The firm is promoted by the Mayur group with three manufacturing units at Jaipur and an established trading network in synthetic leather. In 1994, the company commenced commercial production of PU/PVC synthetic leather at Jaitpura, Rajasthan. The firm is also setting up a pilot plant from Italy for R&D development to upgrade finished products and to meet various requirements.

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
Published on: Apr 27, 2018 3:49 PM IST
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