Mirza International (NSE Cash) - BUY
94 - 92
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
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
for a target of
113 in coming three months. A stop loss
can be placed at
Source: Falcon ( Chart time: 10:15 IST on 23/09/2016 )
September 23, 2016
Mirza International Ltd.
Strong growth in domestic branded segment to drive overall growth: In the
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
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
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
( 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
market and momentum in newer geographies like the Middle East countries.
Genesis Footwear merger to boost margins: In FY16, Mirza acquired Genesis
Face Value (
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 (%)
90cr, EBITDA margin of ~29%, and PAT of
Outlook and Valuation: At the current market price of
4, the stock trades at a
PE of 13.6x and 11.8x its FY17E and FY18E EPS of
Looking at the growth visibility the valuations looks attractive.
MF / Banks / Indian Fls
OPM PAT EPS Adj. ROE P/E P/BV EV/EBITDA EV/Sales
FII / NRIs / OCBs
Indian Public / Others
September 23, 2016
Research Team Tel: 022 - 3935 7600
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September 23, 2016