MIRZAINT

NSE Symbol: MIRZAINT

Last Close: Rs.20.75

Mirza International Ltd. (MIL) is a frontrunner in the manufacturing and marketing of leather and leather footwear.

Headquartered in New Delhi, the company markets its products across the globe to the UK, Europe, South Africa, the

Middle East and other countries. It is an ISO 9001, 9002 and 14000 certified company that and has a fully integrated inhouse

shoe production facility backed by a state-of-the-art double density direct injection polyurethane plant, a tannery

with its own pollution treatment plant and a dedicated design studio in London. Its plants are located at Magarwara and

Sahjani in Unnao, and in Noida all in UP

. The tannery is also located at Magarwara in Unnao. These plants are backed by

over 25 dedicated ancillary units.

MIL has an equity base of Rs.18.54 crore that is supported by huge reserves of around Rs.160 crore. The promoters hold

65.97%, non-promoter corporate bodies hold 4.95% while the investing public holds 28.53% stake in the company.

For Q1FY12, it posted net sales of Rs.122.04 crore with net profit of Rs.6.87 crore against net sales of Rs.95.09 crore with

net profit of Rs.7.91 crore in Q1FY11. For FY11, it recorded net sales of Rs.474.38 crore with net profit of Rs.39.18 crore

against net sales of Rs.380.03 crore with net profit of Rs.18.78 crore in FY10. The Q1FY12 EPS is Rs.0.74 while the FY11 EPS

was Rs.4.23. At the current level, the stock is available at a forward P/E multiple of just 4.85. The company paid 25%

dividend for FY11.

Investors can accumulate this Rs.2 paid-up stock between Rs.18-20 with a stop loss of Rs.16. On the upper side, the stock

will zoom to Rs.25/26 level in the medium-term.

soure: Dr. Anurag Singhal