Mirza International - consistent performer but undervalues at present?

Some number crunching:-

  1. 30% YoY growth in footwear division (impressive)
  2. 9% YoY growth in garments (below par… tbh their range is quite impressive… visited a store recently)
  3. 50% YoY growth in profits for the 2 divisions (23crs to 36crs)
  4. Q4 ROCE has improved from 7.5% to 11.88% YoY
  5. Margins have also improved YoY from 9% to around 12%
  6. Buildup of inventory and debtors, should clear out by Q1 most likely. Debt reduction by 62crs (net)
  7. Broadly similar OCF (hit due to #6 above)

Overall, good show. Maybe a bit more of investor communication and this can be a prime example of re-rating.

EDIT - Please don’t compare Q4 with Q3. Courtesy Diwali and festivities in Q3, its usually peak consumer season in India. What’s important is that RedTape and Garments are consistently showing topline growth.

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Any LatestReport on Q4FY22 update on Campus Activewear?

Is promoter gifting shares to another promoter normal practice?
09 June 2022: https://www.bseindia.com/xml-data/corpfiling/AttachLive/5ab7f3ba-3085-4160-bb65-f9788aec02a8.pdf

  1. Mr. Farzan Mirza. member of the Promoter Group of the Company. on 07.06.2022. regarding disposal of 5.00.000 (0.42%) equity shares of the Company on 06.06.2022. by way of gift;
  2. Mr. Tasneef Ahmad Mirza. Promoter of the Company. on 07.06.2022. regarding acquisition of 5.00.000 (0.42%) equity shares of the Company on 06.06.2022. by way of gift.
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Progress on demerger happening…

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HDFC small cap fund almost doubling it’s position in May from 27cr to 52cr

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Yes, promoters gifting other promoters is a normal practice and nothing wrong with that.

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Hi All,
I have been going through the AR FY21 and in other expenses breakup, one expense named “Commission” takes the biggest pie.


I am assuming this commission is different than the “guarantee commission” promoter takes since 105cr is such a significant amount to be a “guarantee commission”.
Can any one of you throw lights on what this commission is?

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I can’t be 100% sure but going by the fact they sell on platforms like Amazon and other ecommerce site, this “Commission” may be referring to “Commission” being charged by various platforms.

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Did anyone able to get reason of not paying Dividend for this year?

I was expecting good Dividend this year. Surprise to see no Dividend declared yet.

Corporate governance is biggest risk with this counter. Please do proper research before investing lumpsum.

Disclosure: I am holding this counter from 2011. Not planning to add till there are improvement with governance.

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Good to see someone holding since a decade. What is your rational for holding so long ?

Thanks

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Similar to relaxo, I was expecting 2-3x growth in 5 years. This script gave me good learning relate to importance of governance and management.

I still foresee good growth within this sector. Its up to the management how much they want to tap this market aggressively. But, based on my long journey with this script, it still does not qualify to be in the core portfolio by ticking all the criteria. Hope it helps.

Disc: I am invested in this counter around 15 Rs. So my views can be biased.

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Commission expenses over here are franchisee commission which is 25 % of sales for every store… Given the debt has reduced considerably the guarantee commission is 4 cr for current year as per the RP transaction filing.

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