Check the portfolio under console .It should show up as INE0LXT01019 . Thats the temporary ISIN .It will get a new one when it gets listed .
Can you confirm if current book value of Mirza would be 726 crore or 726-301=425 crores
The document says book value before demerger is 726 crores. So I think the current book value should be 726 crores less redtape assigned book value of 301 crores, =425 crores
Also,
301/726= 41%
726-301=425/726=59%, which is the cost of acq ratio
Hence, current book value of Mirza should be 726*59%=726-301=425, and current mv of 690 crores is already higher than this book value of 425. So I dont think being valued under book value is the reason it is increasing
Although I may be wrong in this assumption, feel free to correct if so
Disc : Invested, prior to demerger
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Yes you are right, networth is before demerger.
However market might have expected much less than this as main business is Redtape.
Because only after this update 3 upper circuits in this script.
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Mirx international price soar nearly 63 % in 3 days. Whats the trigger…
Redtape shares have been credited.
Yes ISIN INE0LXT01019 credited to demat.
Hi, the screener is still showing the pre-merger market cap.
As I see from the above posts, 70% of Mirza revenue came from Red Tape. Market seems to, on the other hand elated and the stock has been rising for a few days.
A regular guest on the CNBC said today that Mirza is Titan of the shoes.
I will be grateful for any input from members who have been following this company, for inputs on the Mirza International’s business post the demerger.
Disclaimer: Have invested some today.
The market cap before merger was 4000cr+
Screener is showing around 832cr today
It’s definitely post demerger market cap
If you are talking about RTS merger, then it was comparitively small unlisted private company which has been merged, which I don’t think will impact much in terms of market cap
Can you please clarify what you mean regarding the screener market cap
I was talking about this. I am not sure. Screener is showing the market cap at ₹832 cr.https://www.screener.in/company/MIRZAINT/
Is this the pre or post merger cap?
Because, if it is, then Mirza is still undervalued, and the market enthusiasm is justified.
425 is after/post demerger book value,
832 is after/post demerger market value as of today
ie, Comparitive book value is 425cr, and comparitive market value is 832 crore
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Shares of Mirza International were locked at the upper circuit for the third straight day, up 10 per cent at Rs 60.40 on the BSE on Friday at 10:54 AM, in otherwise subdued market. In comparison, the S&P BSE Sensex was down 0.09 per cent at 59,578.The average trading volumes at the counter more-than-doubled today. A combined 8.14 million equity shares representing 6 per cent of total equity of Mirza International had changed hands on the NSE and BSE.In past three trading days, the stock has surged 45 per cent from a level of Rs 41.60 on Tuesday after trading in equity shares of the company were permitted under “A” group after being transferred from “T” with effect from April 18, 2023.
In past nine trading days, the stock price of Mirza International has more-than-doubled or zoomed 101 per cent from Rs 30.02, touched on April 6, 2023.Mirza International is one of India’s leading manufacturers and exporters of leather footwear, apparels and accessories. Since, March 28, 2023, Mirza International started trading ex-REDTAPE business.The composite scheme of arrangement of RTS Fashions Private Limited and Mirza International and REDTAPE was approved by Hon’ble National Company Law Tribunal, Allahabad Bench, Prayagraj vide its letter dated February 21, 2023.The company had fixed March 29, 2023 as record date for the purpose of determining the eligibility of the equity shareholders of Mirza International, to whom the fully paid-up equity shares of Rs 2 each, of REDTAPE will be issued and allotted in consideration of demerger of branded business/REDTAPE business (the demerged business) of Mirza International, in the ratio of 1 equity share of Rs 2 each of the REDTAPE, for every 1 equity share of Rs 2 each held in Mirza International.The management said Mirza International, will focus on manufacturing and export of leather-based footwear and accessories, which has been its mainstay since inception. It will undertake leather exports, white labeling and private label, in the global markets for both men’s and women’s footwear, upholstery, furniture and accessories.The company will continue to hold Mirza (U.K.). It will be exclusively engaged in selling our leather-based footwear and accessories in the international market by positioning as a manufacturing partner of excellence for leading global brands looking for quality-first and sizable capacity partners.The management further said it is confident that this measure to separate domestic and international businesses will help drive a more focused growth strategy for the respective businesses, thereby unleashing their true potential.The global footwear market is expected to grow by 12.83 per cent YoY by 2028. Changing lifestyles, growing economies and heightened focus on health, especially in the wake of the pandemic, have boosted the demand for footwear globally, according to the management.There has also been a massive shift in consumer perspectives regarding footwear. Consumers no longer look at shoes and footwear to serve just function but are now gradually moving towards footwear for fashion. The leather and non-leather segments, driven by a robust domestic market, make up the Indian footwear industry. According to Invest India’s report on the ‘Non-leather footwear Industry in India’, the sector in India is projected to increase eight-fold by 2030. India’s non-leather footwear industry will soon cross the $6 billion mark by 2024, Mirza International said in its FY22 annual report.
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I would like to understand the recent rally in this stock. I understand that demerger unlocks business value and generally attracts investors over time but as far as I’m aware, the speed with which the tide is rising for Mirza post demerger is pretty remarkable. Is there any sound academic explanation available for this rise (whether some new fundamental information came to light) or it should be completely accrued to the mood of Mr. Market? Thanks!
ANALYST’S VIEW
- MIRZA INTERNATIONAL IS CONTRIBUTING ONLY 30% IN TOTAL REVENUE AND 20% IN TOTAL PAT OF COMPANY (BEFORE DEMERGER).
- AVERAGE VALUATION OF LEATHER BUSINESS INDUSTRY IS AROUNG 8-9 P.E. HOW MIRZA INTERNATIONAL IS GETTING A VALUATION OF 25.5 P.E DESPITE THERE IS NO REVENUE GROWTH IN LEATHER BUSINESS IN LAST 5 YEARS?
- AS PER ANALYSIS, EPS OF MIRZA INTERNATIONAL BUSINESS IS ONLY Rs.2.6 AND ON THE VALUATION OF P.E 12, FAIR VALUATION OF SHARE SHOULD BE RS.31.2. THERE IS A DOWNSIDE RISK OF 47% AT THE CMP OF RS.66.30.
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i have a silly doubt - my avg for mirza was around 139 before the demerger and i was in profits but as of today where the red tape has demerged from mirza my avg has become 90 odd and the stock is trading around 62 obv. i am in loss . my q. is how should i look at this will this loss be adjusted after the demerged co list or i have to bear the loss ?
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AFAIK, the purchase cost of the demerged shares will be 0, and the listing price will be your profit per share. So even if you see price of the original company going down, when you combine the 2 companies’ prices, you will be in profit, assuming there has been appreciation before the demerger.
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Don’t worry. You must have received REDTAPE shares in your DP. Redtape will be listed soon and then you will be able to see the value of those shares. You will not be in loss.
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In this case purchase price of REDTAPE won’t be zero. Original purchase price been split between the two based on book value in roughly 60:40 ratio, so your mirza share is now 90 and you will get red tape at 49. This pricing is relevant for capital gains calculation for ITR.
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