NSEI:MIRZAINT

Stock Analysis Report

Executive Summary

Mirza International Limited manufactures and markets leather footwear and finished leather products in India.

Rewards

Trading at 73.1% below its fair value

Pays a high and reliable dividend of 2.93%

Risk Analysis

Earnings have declined by -3.63% per year over past 5 years

Interest payments are not well covered by earnings

Profit margins (3.7%) are lower than last year (5.5%)

Does not have a meaningful market cap (₹7B)



Snowflake Analysis

Established dividend payer with mediocre balance sheet.


Similar Companies

Share Price & News

How has Mirza International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MIRZAINT has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

9.8%

MIRZAINT

-0.5%

IN Luxury

-1.5%

IN Market


1 Year Return

19.2%

MIRZAINT

18.2%

IN Luxury

10.7%

IN Market

Return vs Industry: MIRZAINT exceeded the Indian Luxury industry which returned 18.2% over the past year.

Return vs Market: MIRZAINT exceeded the Indian Market which returned 10.7% over the past year.


Shareholder returns

MIRZAINTIndustryMarket
7 Day9.8%-0.5%-1.5%
30 Day-1.0%3.0%-2.7%
90 Day10.9%9.2%1.3%
1 Year23.0%19.2%19.0%18.2%12.7%10.7%
3 Year-29.5%-32.7%52.2%48.8%22.0%15.1%
5 Year-27.3%-31.4%106.9%100.1%34.5%22.0%

Price Volatility Vs. Market

How volatile is Mirza International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Mirza International undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MIRZAINT (₹61.5) is trading below our estimate of fair value (₹228.37)

Significantly Below Fair Value: MIRZAINT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MIRZAINT is poor value based on its PE Ratio (15.5x) compared to the Luxury industry average (11.2x).

PE vs Market: MIRZAINT is poor value based on its PE Ratio (15.5x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MIRZAINT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MIRZAINT is overvalued based on its PB Ratio (1.2x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

How is Mirza International forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

19.9%

Forecasted Consumer Durables industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Mirza International has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Mirza International performed over the past 5 years?

-3.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MIRZAINT has high quality earnings.

Growing Profit Margin: MIRZAINT's current net profit margins (3.7%) are lower than last year (5.5%).


Past Earnings Growth Analysis

Earnings Trend: MIRZAINT's earnings have declined by -3.6% per year over the past 5 years.

Accelerating Growth: MIRZAINT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MIRZAINT had negative earnings growth (-21.7%) over the past year, making it difficult to compare to the Luxury industry average (5.6%).


Return on Equity

High ROE: MIRZAINT's Return on Equity (7.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Mirza International's financial position?


Financial Position Analysis

Short Term Liabilities: MIRZAINT's short term assets (₹7.0B) exceed its short term liabilities (₹4.6B).

Long Term Liabilities: MIRZAINT's short term assets (₹7.0B) exceed its long term liabilities (₹2.1B).


Debt to Equity History and Analysis

Debt Level: MIRZAINT's debt to equity ratio (53.6%) is considered high.

Reducing Debt: MIRZAINT's debt to equity ratio has increased from 52.1% to 53.6% over the past 5 years.

Debt Coverage: MIRZAINT's debt is well covered by operating cash flow (93.5%).

Interest Coverage: MIRZAINT's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet

Inventory Level: MIRZAINT has a high level of physical assets or inventory.

Debt Coverage by Assets: MIRZAINT's debt is covered by short term assets (assets are 2.1x debt).


Next Steps

Dividend

What is Mirza International's current dividend yield, its reliability and sustainability?

2.93%

Current Dividend Yield


Dividend Yield vs Market

company2.9%marketbottom25%0.6%markettop25%2.6%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: MIRZAINT's dividend (2.93%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: MIRZAINT's dividend (2.93%) is in the top 25% of dividend payers in the Indian market (2.58%)


Stability and Growth of Payments

Stable Dividend: MIRZAINT's dividends per share have been stable in the past 10 years.

Growing Dividend: MIRZAINT's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (22.7%), MIRZAINT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Rashid Mirza (63yo)

₹24,235,848

Compensation

Mr. Rashid Ahmed Mirza, Dip in Lether tech, serves as Chairman of the Board at Mirza International Limited since May 30, 2019. He co-founded Mirza International Limited in 1979 and serves as its Managing D ...


CEO Compensation Analysis

Compensation vs Market: Rashid's total compensation ($USD338.68K) is above average for companies of similar size in the Indian market ($USD50.34K).

Compensation vs Earnings: Rashid's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Rashid Mirza
Chairman0yrs₹24.24m11.27% 801.9m
Vadakke Elukkalyil Cherian
Chief Financial Officer3.8yrs₹3.20m0.00091% 64.8k
Ankit Mishra
Company Secretary & Compliance Officer3.9yrs₹1.24mno data
Narendra Upadhyaya
Whole-Time Director22.8yrs₹4.29mno data
Tauseef Mirza
Whole-Time Director30.4yrs₹22.82m14.62% 1.0b
Shahid Mirza
Whole-Time Director2.3yrs₹20.49m8.47% 602.6m
Tasneef Mirza
Whole-Time Director23.1yrs₹20.40m11.73% 834.7m
Shuja Mirza
Additional Executive Director0.7yrsno data5.93% 422.3m
Faraz Mirza
President of Production0yrsno data3.99% 283.9m

3.8yrs

Average Tenure

56yo

Average Age

Experienced Management: MIRZAINT's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Rashid Mirza
Chairman0yrs₹24.24m11.27% 801.9m
Narendra Upadhyaya
Whole-Time Director22.8yrs₹4.29mno data
Tauseef Mirza
Whole-Time Director30.4yrs₹22.82m14.62% 1.0b
Shahid Mirza
Whole-Time Director2.3yrs₹20.49m8.47% 602.6m
Tasneef Mirza
Whole-Time Director23.1yrs₹20.40m11.73% 834.7m
Shuja Mirza
Additional Executive Director0.7yrsno data5.93% 422.3m
Qazi Salam
Non-Executive Independent Director25.6yrs₹50.00kno data
Yashvir Singh
Non-Executive Independent Director25.6yrs₹40.00kno data
Sudhindra Jain
Non-Executive Independent Director11.6yrs₹50.00kno data
Saumya Srivastava
Independent Director0.5yrsno datano data

17.2yrs

Average Tenure

62.5yo

Average Age

Experienced Board: MIRZAINT's board of directors are seasoned and experienced ( 17.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Mirza International Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mirza International Limited
  • Ticker: MIRZAINT
  • Exchange: NSEI
  • Founded: 1979
  • Industry: Footwear
  • Sector: Consumer Durables
  • Market Cap: ₹7.116b
  • Shares outstanding: 120.31m
  • Website: https://www.mirza.co.in

Number of Employees


Location

  • Mirza International Limited
  • 14/6, Civil Lines
  • Kanpur
  • Uttar Pradesh
  • 208001
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
526642BSE (Mumbai Stock Exchange)YesEquity SharesININROct 1996
MIRZAINTNSEI (National Stock Exchange of India)YesEquity SharesININROct 1996

Biography

Mirza International Limited manufactures and markets leather footwear and finished leather products in India. It operates through two segments, Tannery Division and Shoe Division. The company offers men’s and women’s footwear; and formal and urban footwear for mobile executives and businessmen. It also provides men’s casual and semi-formal wear, including shirts, T-shirts, trousers, denims, sweaters, jackets, and accessories, such as belts, socks, handkerchiefs, and wallets; and women’s clothing. The company sells its products under the REDTAPE, Bond Street, Oaktrak, and MODE brand names through multiple brand outlets, chain stores, prime outlets, shop windows, and exclusive brand shops, as well as online. Mirza International Limited also exports its products. The company was formerly known as Mirza Tanners Limited. Mirza International Limited was founded in 1979 and is headquartered in Kanpur, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 13:00
End of Day Share Price2020/02/19 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.