Mirza International Ltd. share price target

Bad Inventory Controls Led to a Disappointing Bottom-line: Mirza International's store expansion, which did not go as per plan (of 75 OnlineStores) resulted in higher working capital because of lower number of stores, inventory for which, had to be updated in advance for the winter season for non-indigenous markets.

Online Store Expansion Keeps Topline Buzzing: Mirza International Ltd's revenue for Q2FY19 came in at Rs 2958.61 Mn, up 23.1% YoY. EBITDA for the quarter came in at Rs. 426.65 Mn, up 0.5% YoY. Margins for the quarter came in at 14.4%, down by ~ 324 bps YoY due to higher input prices.

Exports to Remain Tapered for FY19E; Domestic Markets to Flourish on the Back of Store Expansion: Strong domestic revenue growth can be attributed to the aggressive expansion of online EBOs (Exclusive Brand Outlets), strategized entry into organized value footwear segment with the launch of sports/canvas (Vulcanized Footwear), Bond Street and renewed focus coupled with expansion of product portfolio in the garment segment.

We maintain our BUY rating on Mirza International with revised TP of Rs162. We believe the growth momentum in the domestic business would get better on the back of increasing focus on the newly launched Bond Street & sports/canvas shoes. Further online EBO channel is garnering strong traction wherein the management has plans to aggressively open new stores. Entry in the women's footwear through Mode' brand would help the company in garnering incremental sales while the garmenting business continues to grow at healthy...

Mirza International Limited (MIL) is India's leading manufacturer and marketer of leather footwear and finished leather. With an established footprint that spans across 30 countries, as well as a rock solid infrastructure. Apart from supplying products to global retailers, It also has global in-house brands - Red Tape and Oaktrak - in its portfolio. Recently the company acquired brand Yezdi to increase its product offerings. It has also launched two new sub-brands of REDTAPE: Bond Street and Red tape Athleisure Sports range based on the years of experience as well as insight....

Levers in place to achieve Rs6bn domestic sales guidance We maintain our BUY rating on Mirza International with a TP of Rs205 (20x FY20E EPS). While management has achieved its FY18E guidance of Rs4bn domestic sales, they have further guided for Rs6bn sales for FY19E on the back of new product launches and entry into women footwear. They believe the 100 online-offline large format stores have the potential to generate Rs30mn sales each which would offer them significant upside. Further sports shoes and Bond Street have contributed 30% to the domestic footwear sales which would further grow in FY19 as they launch new...

Mirza Intl. reported an average quarter with revenues of Rs 254 cr (?11% (YoY) & ?6%QoQ), an EBIDTA of Rs 46 cr (?16% (YoY) and ?9% on sequential basis) and PAT of Rs 20.9 cr (?22% (YoY), ?8% QoQ) in Q3FY18.

In order to retain the leadership position that company have in overseas markets & to grow further in India, MIL made some significant moves in the past year. Going forward, company is in focus for accelerating growth for the REDTAPE Brand in high-traction markets i.e. US, India and UK. REDTAPE will be made available in more retail stores through tie-up with five US retail giants & in...

In order to retain the leadership position that company have in overseas markets & to grow further in India, MIL made some significant moves in the past year. Going forward, company is in focus for accelerating growth for the REDTAPE Brand in high-traction markets i.e. US, India and UK. REDTAPE will be made available in more retail stores through tie-up with five US retail giants & in...

We maintain our BUY rating on Mirza International with a TP of Rs215 (20x FY20E EPS). Growth in domestic revenue continues to be strong double digit on the back of traction in sports shoes and lower price point Bond Street. Management plans to focus on North India market for sports shoes and also on online-offline stores which they plan to scale to 70-100 store over next 1 year. Entry in the women footwear segment is a logical extension which would bear fruits over next 2 years as the management is targeting to sell 0.5mn pairs. Further they have received upholstery orders from China which would boost tannery sales which has been declining. While...

We maintain our BUY rating on Mirza International with a TP of Rs215 (20x FY20E EPS). Growth in domestic revenue continues to be strong double digit on the back of traction in sports shoes and lower price point Bond Street. Management plans to focus on North India market for sports shoes and also on online-offline stores which they plan to scale to 70-100 store over next 1 year. Entry in the women footwear segment is a logical extension which would bear fruits over next 2 years as the management is targeting to sell 0.5mn pairs. Further they have received upholstery orders from China which would boost tannery sales which has been declining. While...

Improved Margins; Growth is on track with Online Sales contributing Significantly: Mirza International revenue for Q2FY18 came in at Rs. 2404 Mn, registering 4.7% QoQ decrease, and by 4.0 % YoY. EBITDA for the quarter increased by 12.2% YoY and decreased by 3.9% QoQ to Rs. 424 Mn with a corresponding margin expansion of 254 bps YoY on the back of increased Indian Branded Footwear (RedTape) Sales at Rs. 1700 Mn for H1FY18 increasing by 95% YoY and further aided by favourable changes in inventories. UK, US, RoW (Rest of the World) sold 90 Mn, 25 Mn and 5 Mn pairs.

We maintain our BUY rating on Mirza International with a TP of Rs205 (23x FY19E EPS). We believe management's plan to enter into the women footwear segment will be value accretive in medium term and mitigate the decline from the export markets. Growth in the domestic market continues to be healthy at 76% YoY. Online sales have started to contribute substantially and hence management has started a store with online pricing and plans to further expand the same. Operating margins will continue to expand with the growth in domestic business as they have higher gross margins....

Mirza Intl. reported revenues of Rs 252 cr (flat on annual comparison & 23%QoQ), an EBIDTA of Rs 44 cr (flat on annual comparison and 10% sequential basis) and PAT of Rs 20.1 cr (up 1% (YoY) and ?14% QoQ) in Q4FY17.

Mirza International revenue for Q4FY17 came in at Rs. 2059 Mn, registering 0.01% YoY increase, while decreased by 9.7% QoQ. EBITDA for the quarter fell by 25.3% YoY to Rs. 400 Mn with a corresponding margin contraction of 658 bps on the back of increased other expenditure standing at Rs. 548 Mn for the quarter increasing by 26.6% QoQ and 1.3% YoY and UK, RoW (Rest of the World) Exports decreased by 3% & 19%. EBITDA margin for the quarter stood at 19.4%. The PAT for the Q4FY17 came in at Rs.177 Mn, YoY decline of 39.1% and increased by 2.8% QoQ.

Having successfully restructured its business by amalgamation of promoter owned Genesis Footwear, MIL is now eyeing to enhance its product portfolio and position itself as a brand by concentrating on increasing its reach in the domestic market.

Mirza International: The company is looking to make a foray in sports wear segment by making test launch using imports from China under Redtape brand.The company plans to export the sports shoe in future under the Redtape brand.

Mirza Intl. reported revenues of Rs 228cr (?6% YoY & ?9%QoQ) primarily driven by ~13% rise in shoe segment revenue with the launch of new brand Bond Street at a price bracket slightly lower (Rs 1500-2000/-) than Red Tape. The company reported an annual expansion of ~159 bps in EBIDTA margins ..

For 3QFY2017, Mirza International (MIL) posted results which were below our estimates on both, the top-line and the bottom-line fronts. Revenues de-grew by ~6% yoy, lower than our estimate. However, on the operating front, the company reported margin improvement on the back of lower raw material cost, which therefore, lead to double digit..