Mirza International - consistent performer but undervalues at present?


(Gary) #62

Seeing what we have seen of PSBs and particularly PNB, this could very well mean other things. :stuck_out_tongue_closed_eyes:


(MHS) #63

I did some Moat Analysis and require some inputs/data validation in some points which highlighted in red(??): provide your feed back


(sri krishna bhutra) #64

Mirza q4 fy 18 results

Degrowth in both domestic and export revenues compared to last quarter.
Receivables and inventories have also gone up considerably.

Regards
Krishna


(tyrion lannister) #65

i think it has to compared YOY due to seasonal in nature ( Diwali in Q3)


(draveshiya) #66

Inventory, receivables significantly grown. receivables almost doubled…need to deep dive into numbers


(Furkan Alam) #67

Management talks on these aspects in the conference call…Mostly high inventory to cater to the growing product categories and to stock in the growing number of stores…

Disc : - Invested


(shenbal) #68

Today Relaxo and Bata at 52 week high … Mirza not joining the party …

Could not find any recent thread (Relaxo and Bata thread are old) …

Any views on the sudden interest and rally in Footwear stocks ?


(Ayush Mittal) #69

Full 2 page ad in Lucknow times today. Also noticed flash of “Red Tape” as the “most wanted” or “top brand in focus” on apps like Myntra

On the negative - they have just 2 large format stores in Lucknow and Kanpur and yet they have given such a huge ad


(Akbar Khan) #70

Since the ads are specific for Online it should not matter.
Any idea why change in inventory is so huge? Higher than profits makes me cautious.


(RamanTiwari) #71

Some scuttlebutt(not invested and just pointing my random observations):

  • I was once flying on a business trip from Dubai to New York - found the promoters and an associate on business class of Emirates A380. A brief interaction showed he was focused on exports saying domestic brand building is not an easy job, but that was 2015.
  • Corporate finance issue: I think its just a few more active MIrza’s want higher share from family business and hence this guarantee
  • I feel these guys are down selling their brand when it comes to non-shoes. Look online, while blackberry/AllenSolly/Arrow would price shirts around 1500+ with 20-30% discount, more often than not RedTape shirts are available for 700 and many times for 70% discount. Even visit to Indian stores show heavy discounting on shoes by red tape. def not ROE accretive.

(Ankchandak) #72

@RamanTiwari Yes, they were Export oriented some time back as they saw more margins there that time.
But from last year they started looking at domestic business. What they started with was doing a soft launch for their sports shoes, which was first imported from China (almost every shoe maker does that). They got a good response. And eventually started focusing on the domestic. That is visible from their segment wise sales numbers.
Now you can find presence of redtape shoes in most of the big retail chains as well online sites. Agree with the point that they are offering huge discounts, that may be because they want to capture good market share now.


(Ankchandak) #73

It’s just a guess.
There could be some of reasons as below
Domestic focus is just started so they would have built inventory
They are also selling through e-commerce channels so they would have kept good inventories at e-commerce players fulfillment centers as well