Deepen Thakkar's Stock Idea
Deepen Thakkar is Bullish on Mirza International Ltd.
Idea Submitted on 17Sep,2018
  • 3 Total Ideas
  • 0 Active Ideas
  • 3 Closed Ideas
  • 3 Friends
  • 0 Followers
  • Avg. Returns
     -21.92%
    Success Rate
      33.33%
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      Idea Status :  Closed
    Stop Loss Triggered
    Idea Closed at 74.95 (08Oct,18 09:56:am)
     Time Frame
    3year
     Start Price
    93.6
     Target Price
    170
     Stop Loss
    75
     Projected Gain
    76.4 (81.62% Upside)
     Returns Achieved
    -18.65     -19.93%
     Analysis
    Mcap :1122 cr      ROCE :19.15%  D/E :0.50  BV:49                                   YE16       YE17          YE18 SALES         926       936            972 OPM        18.42%    17.22%    17.09% NET PR          78         72           78   B2C play available at a meagerP/E of 14 The company is intofootwear segment ,the revenue mix consisting of 60% domestic branded sales and 40% export sales. Company sells under 3brands Redtape, Bond Street, Oaktree. And  redtape is a very  reputed brandname . Company was a majorexporter to u.k couple of years ago ,but due to brexit issues the business has suffered in u.k .So now management is concentrating on establishing itself as a brand in domestic markets. They have recently forayedinto sportswear segment under  Redtape Athleisure,in ladies branded footwear and also into apparels segment. Seems they are trying to imitate the Nike, Adidas model in India and take the market share from them by providing cheap and sustainable products . Already has a network of160 stores which the management  looksforward to add sizably and is targeting 300stores within 2 yrs frame . Also they have a prominent online presence  whichalso they are looking expand in future . They are consistently growing at 25-30% in last 2/3 years in indian markets . Looking at future indiandemographics condition ,urbanization due to there increasing income and aspirations there will be lots of young people buying branded apparels, footwear than at present . There are some issues oncorporate governance like too much related party transactions ,high salaries to promoters and also royalty given to them as a guarantor for bank loan ,which an individual investor should assess by himself and before taking any decision https://pbs.twimg.com/media/DJvxzxfUEAA3aRI.jpg:large   Overall in my opinion thisis good b2c ,branded ,scalable and growing play available at a decent valuation and one can look forward for an investment horizon of 2/3 years
     Stock Price Movement (EOD Basis)
     C.M.P Mirza International
    38.55
    Sentimeter
    Buy Calls: 6 Sell Calls: 0
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