Range
Stop Loss
Target
Mirza International (NSE Cash) - BUY
94 - 92
83
113
Weekly Chart
Technical Evidences
On weekly charts, the recent corrective
move has led to formation of a ‘Falling
Wedge’ pattern. The mentioned pattern, if
formed post a corrective move, could lead
to trend reversal on breakout.
The prices are showing signs of breakout
from the pattern on weekly charts. Also,
the recent low coincides with the long term
support zone.
The ‘RSI Smoothened’ oscillator on weekly
chart have given positive crossover from
the oversold zone. indicating probability of
a positive momentum.
The trend following indicators, viz. the
‘SuperTrend’ and the ‘PSAR’ on daily
charts are in ‘Buy’ mode.
Thus, the stock can be bought from current
level to a decline up to `92 for a target of
`113 in coming three months. A stop loss
can be placed at ` 83.
Source: Falcon ( Chart time: 10:15 IST on 23/09/2016 )
September 23, 2016
Stock Info
Mirza International Ltd.
Strong growth in domestic branded segment to drive overall growth: In the
Sector
Footwear
branded domestic segment, we expect the company to report a ~24% CAGR
over FY2016-18E to `346cr. We expect MIL to report a net revenue CAGR of
Market cap
1,103
~11% to `1,148cr over FY2016-18E on back of strong growth in domestic
branded sales and healthy export revenues. . On the bottom-line front, we expect
Beta
1.6
a CAGR of ~11% to ` 97cr over the same period.
Strong global footprint: Export constitutes ~75% of the company’s total revenue
52 week high/low
145/83
( UK 73% & US 14%). We expect the company to report healthy growth over the
next 2-3 years on back of recovery in the UK market, strong growth in the US
Avg. Daily Volume
17,90,185
market and momentum in newer geographies like the Middle East countries.
Genesis Footwear merger to boost margins: In FY16, Mirza acquired Genesis
Face Value (`)
2.0
Footwear which has a better margin profile than it. The deal resulted in MIL’s EPS
increasing by ~4% and ROE improving from 15.9% to 17.5% & Mirza’s capacity
increased from 5.4mn to 6.4mn units. During FY16, Genesis reported net sales
Shareholding Pattern (%)
of `90cr, EBITDA margin of ~29%, and PAT of ` 20cr.
Outlook and Valuation: At the current market price of ` 94, the stock trades at a
Promoters
73.8
PE of 13.6x and 11.8x its FY17E and FY18E EPS of `6.9 and `8.0, respectively.
Looking at the growth visibility the valuations looks attractive.
MF / Banks / Indian Fls
0.3
Company
Sales
OPM PAT EPS Adj. ROE P/E P/BV EV/EBITDA EV/Sales
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FII / NRIs / OCBs
0.5
FY2017E
1024
18.0
83.0
6.9
16.6
13.6
2.3
7.3
1.3
Indian Public / Others
25.4
FY2018E
1148
18.0
97.0
8.0
16.3
11.8
1.9
6.5
1.1
September 23, 2016
Research Team Tel: 022 - 3935 7600
E-mail: [email protected]
Website: www.angelbroking.com
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Disclosure of Interest Statement
Mirza International
1. Financial interest of research analyst or Angel or his Associate or his relative
No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives
No
3. Served as an officer, director or employee of the company covered under Research
No
4. Broking relationship with company covered under Research
No
September 23, 2016