Mayur Uniquoters gains 7% post Q2 results; board approves buyback

Shares of Mayur Uniquoters climbed 7 per cent to Rs 272 on the BSE on Wednesday after the company announced that it would be buying back 1.65 per cent of the share capital at Rs 400 per share.

The company said it would buy shares amounting to Rs 30 crore, with promoters intending to participate in the buyback as well. The promoters held 61.48 per cent stake in the textiles company. The record date for the same is fixed as November 25, 2020.

“The buyback is proposed to be made to all existing shareholders of the Company on the record date, on a proportionate basis under the tender offer route,” Mayur Uniquoters said in a statement.

Meanwhile, in the July-September quarter (Q2FY21), Mayur Uniquoters' consolidated revenues fell 3.9 per cent year-on-year (YoY) to Rs 126 crore. Profit after tax was down 9 per cent YoY at Rs 20 crore, due to lower sales. However, operating profit margins improved 560 basis points YoY to 23 per cent on account of savings in other expenses.

In the past six months, the stock rallied 83 per cent, as compared to 37 per cent rise in the S&P BSE Sensex. While, in three years period, it has underperformed the market by falling 40 per cent, against 30 per cent rise in the benchmark index.

At 01:05 am, the stock was up 5 per cent at Rs 267 in an otherwise range-bound market. The Sensex was down 0.23 per cent at 43,179 points. A combined 356,000 shares were changing hands on the counter on the NSE and BSE.