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Last Updated on: 23 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Mirza International Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 22, 2024, 9:54 pm

Market Cap 525 Cr.
Current Price 37.9
High / Low63.6/37.4
Stock P/E43.3
Book Value 40.0
Dividend Yield0.00 %
ROCE4.87 %
ROE2.22 %
Face Value 2.00
PEG Ratio-2.02

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Mirza International Ltd

Competitors of Mirza International Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Euro Leder Fashion Ltd 11.6 Cr. 26.033.7/17.6145 32.20.00 %6.05 %2.31 % 10.0
Billwin Industries Ltd 19.2 Cr. 46.070.1/34.828.7 33.10.00 %13.4 %12.8 % 10.0
Anka India Ltd 14.1 Cr. 14.120.5/0.00 0.560.00 %%% 10.0
Amin Tannery Ltd 25.9 Cr. 2.403.09/1.9686.4 1.170.00 %5.03 %2.92 % 1.00
Zenith Exports Ltd 107 Cr. 253453/140 1450.00 %2.22 %0.39 % 10.0
Industry Average835.83 Cr223.44353.18139.000.09%7.85%4.96%7.80

All Competitor Stocks of Mirza International Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales381.25312.78251.77392.74589.57165.13186.01176.25129.87153.31127.60208.70141.67
Expenses334.39272.62215.98344.33509.69149.70162.87156.08115.91146.81116.65196.66126.25
Operating Profit46.8640.1635.7948.4179.8815.4323.1420.1713.966.5010.9512.0415.42
OPM %12.29%12.84%14.22%12.33%13.55%9.34%12.44%11.44%10.75%4.24%8.58%5.77%10.88%
Other Income0.230.330.8810.855.400.090.240.130.164.610.973.191.55
Interest12.057.426.497.346.483.102.052.711.901.922.022.363.94
Depreciation18.3220.0814.5818.1417.327.026.576.327.166.127.046.407.18
Profit before tax16.7212.9915.6033.7861.485.4014.7611.275.063.072.866.475.85
Tax %3.89%31.56%25.90%20.87%28.55%-47.96%29.13%20.76%24.31%25.08%14.69%38.02%24.96%
Net Profit16.078.8911.5526.7243.927.9810.468.933.832.312.444.014.40
EPS in Rs1.340.740.962.223.650.660.870.740.320.170.180.290.32

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2006Mar 2007Mar 2008Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales2252872899369721,1521,2611,0491,399653619
Expenses2072582867757971,0091,0899301,223590576
Operating Profit182931611751431721191766344
OPM %8%10%1%17%18%12%14%11%13%10%7%
Other Income1521271-13201889
Interest71415262534464123108
Depreciation7892932356367582627
Profit before tax192861071187664121133617
Tax %37%37%44%33%33%36%26%30%23%26%
Net Profit12183727849488862615
EPS in Rs1.271.900.355.966.524.063.970.697.191.911.19
Dividend Payout %39%26%86%15%14%22%23%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2006-20072007-20082017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)50.00%-83.33%8.33%-37.18%-2.04%-83.33%975.00%-69.77%
Change in YoY Net Profit Growth (%)0.00%-133.33%91.67%-45.51%35.14%-81.29%1058.33%-1044.77%

Mirza International Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 8 years from 2006-2007 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:%
5 Years:-11%
3 Years:-16%
TTM:2%
Compounded Profit Growth
10 Years:%
5 Years:-24%
3 Years:11%
TTM:-10%
Stock Price CAGR
10 Years:21%
5 Years:37%
3 Years:50%
1 Year:-16%
Return on Equity
10 Years:%
5 Years:6%
3 Years:7%
Last Year:2%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 8:31 pm

MonthMar 2006Mar 2007Mar 2008Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital191919242424242428282828
Reserves98107113478548588604614481506525525
Borrowings10711211315628335728814049453539
Other Liabilities516263106146147344392174151131140
Total Liabilities2743003087641,0021,1151,2601,170732729719731
Fixed Assets111118124354357409585568361399392387
CWIP1318302255118411119
Investments626111127788
Other Assets145163148408619701663592360322308317
Total Assets2743003087641,0021,1151,2601,170732729719731

Reserves and Borrowings Chart

Cash Flow

MonthMar 2006Mar 2007Mar 2008Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-429114-2435228238-44750
Cash from Investing Activity +-18-19-36-59-67-63-4155-53-29
Cash from Financing Activity +12-10-828926-157-201-12-32-17
Net Cash Flow-10-1-56-68-339-393

Free Cash Flow

MonthMar 2006Mar 2007Mar 2008Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-89.00-83.00-110.005.00-108.00-214.00-116.00-21.00127.0018.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2006Mar 2007Mar 2008Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days4445392650494128154846
Inventory Days29221818019229124021426470155149
Days Payable5759582965455068479173
Cash Conversion Cycle27920416118927524420622438113121
Working Capital Days17915012312017717613413840106111
ROCE %18%9%19%12%12%6%20%7%5%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters67.91%67.91%67.91%67.95%68.15%71.77%71.77%71.76%71.77%71.39%71.27%71.27%
FIIs2.82%3.00%3.42%3.49%3.09%1.56%2.40%1.38%0.47%0.34%0.34%0.30%
DIIs0.04%0.04%3.11%3.87%4.47%4.13%0.00%0.00%0.00%0.00%0.00%0.00%
Public29.23%29.05%25.56%24.69%24.30%22.55%25.83%26.85%27.75%28.27%28.38%28.44%
No. of Shareholders68,22167,61567,75270,80872,75673,02991,50087,64487,98087,83384,12581,943

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)0.871.919.380.693.97
Diluted EPS (Rs.)0.871.919.380.693.97
Cash EPS (Rs.)2.923.7614.406.239.24
Book Value[Excl.RevalReserv]/Share (Rs.)39.9938.6063.1553.0652.20
Book Value[Incl.RevalReserv]/Share (Rs.)39.9938.6063.1553.0652.20
Revenue From Operations / Share (Rs.)45.6147.25139.5487.19104.84
PBDIT / Share (Rs.)4.105.1620.029.9314.42
PBIT / Share (Rs.)2.053.3115.014.409.15
PBT / Share (Rs.)1.202.6012.760.995.36
Net Profit / Share (Rs.)0.871.919.390.693.97
NP After MI And SOA / Share (Rs.)0.871.919.380.693.97
PBDIT Margin (%)8.9910.9214.3411.3913.75
PBIT Margin (%)4.507.0010.755.048.72
PBT Margin (%)2.635.509.141.135.10
Net Profit Margin (%)1.914.046.730.793.78
NP After MI And SOA Margin (%)1.914.046.720.793.78
Return on Networth / Equity (%)2.174.9514.861.307.59
Return on Capital Employeed (%)4.827.9817.456.1213.13
Return On Assets (%)1.673.627.930.713.78
Long Term Debt / Equity (X)0.000.000.010.010.02
Total Debt / Equity (X)0.060.040.100.190.43
Asset Turnover Ratio (%)0.870.601.290.861.06
Current Ratio (X)2.352.042.021.891.53
Quick Ratio (X)1.161.020.660.500.55
Inventory Turnover Ratio (X)1.700.760.610.430.74
Dividend Payout Ratio (NP) (%)0.000.000.000.0045.39
Dividend Payout Ratio (CP) (%)0.000.000.000.0019.48
Earning Retention Ratio (%)0.000.000.000.0054.61
Cash Earning Retention Ratio (%)0.000.000.000.0080.52
Interest Coverage Ratio (X)4.817.288.922.913.81
Interest Coverage Ratio (Post Tax) (X)2.023.705.191.202.05
Enterprise Value (Cr.)609.53494.321992.96657.87695.47
EV / Net Operating Revenue (X)0.960.751.190.620.55
EV / EBITDA (X)10.746.938.285.514.01
MarketCap / Net Operating Revenue (X)0.940.741.150.520.34
Retention Ratios (%)0.000.000.000.0054.60
Price / BV (X)1.070.902.550.850.70
Price / Net Operating Revenue (X)0.940.741.150.520.34
EarningsYield0.020.050.050.010.10

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Mirza International Ltd as of November 23, 2024 is: 39.22

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 23, 2024, Mirza International Ltd is Undervalued by 3.48% compared to the current share price 37.90

Intrinsic Value of Mirza International Ltd as of November 23, 2024 is: 30.82

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 23, 2024, Mirza International Ltd is Overvalued by 18.68% compared to the current share price 37.90

Last 5 Year EPS CAGR: -21.41%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (432.25 cr) compared to borrowings (143.67 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (362.27 cr) and profit (54.18 cr) over the years.
  1. The stock has a low average ROCE of 9.82%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 132.18, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 186.73, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Mirza International Ltd:
    1. Net Profit Margin: 1.91%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 4.82% (Industry Average ROCE: 7.07%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 2.17% (Industry Average ROE: 4.46%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 2.02
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.16
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 43.3 (Industry average Stock P/E: 282.54)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.06
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Mirza International Ltd. is a Public Limited Listed company incorporated on 05/09/1979 and has its registered office in the State of Uttar Pradesh, India. Company’s Corporate Identification Number(CIN) is L19129UP1979PLC004821 and registration number is 004821. Currently Company is involved in the business activities of Tanning and finishing of sole leather. Company’s Total Operating Revenue is Rs. 1671.55 Cr. and Equity Capital is Rs. 24.06 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Leather/Synthetic Products14/6, Civil Lines, Kanpur Uttar Pradesh 208001priyanka.pahuja@redtapeindia.com
http://www.mirza.co.in
Management
NamePosition Held
Mr. Tauseef Ahmad MirzaManaging Director
Mr. Shahid Ahmad MirzaWhole Time Director
Mr. Tasneef Ahmad MirzaWhole Time Director
Mr. Faraz MirzaWhole Time Director
Mr. Nirmal SahijwaniWhole Time Director
Mr. Sudhindra Kumar JainIndependent Director
Dr. Yashvir SinghIndependent Director
Mr. Qazi Noorus SalamIndependent Director
Mr. Sanjay BhallaIndependent Director
Mr. Sanjiv GuptaIndependent Director
Ms. Saumya SrivastavaIndependent Director
Mr. Sabir Amin Ul RahmanIndependent Director

FAQ

What is the latest intrinsic value of Mirza International Ltd?

The latest intrinsic value of Mirza International Ltd as on 23 November 2024 is ₹39.22, which is 3.48% higher than the current market price of ₹37.90.

What is the Market Cap of Mirza International Ltd?

The Market Cap of Mirza International Ltd is 525 Cr..

What is the current Stock Price of Mirza International Ltd as on 23 November 2024?

The current stock price of Mirza International Ltd as on 23 November 2024 is 37.9.

What is the High / Low of Mirza International Ltd stocks in FY 2024?

In FY 2024, the High / Low of Mirza International Ltd stocks is 63.6/37.4.

What is the Stock P/E of Mirza International Ltd?

The Stock P/E of Mirza International Ltd is 43.3.

What is the Book Value of Mirza International Ltd?

The Book Value of Mirza International Ltd is 40.0.

What is the Dividend Yield of Mirza International Ltd?

The Dividend Yield of Mirza International Ltd is 0.00 %.

What is the ROCE of Mirza International Ltd?

The ROCE of Mirza International Ltd is 4.87 %.

What is the ROE of Mirza International Ltd?

The ROE of Mirza International Ltd is 2.22 %.

What is the Face Value of Mirza International Ltd?

The Face Value of Mirza International Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Mirza International Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE