Continuing its upward rally, shares of Mirza International have delivered mind-boggling returns to its shareholders when markets are in a volatile trend. The stock reached its all-time high of ₹369 on the BSE in Wednesday's trade. The stock also piqued the interest of institutional investors with its one-year performance.
Since the beginning of this year, the stock never looked back and rallied from ₹127.20 to ₹363.10 levels, generating a multi-bagger return of 185.45%. while the Nifty has only increased by 1.40 percent. On average stock jumped 23 percent month on month.
In the last one-year period, Mirza International's share price has surged from ₹60.10 to the current level of ₹354.05, climbing by almost 490 percent. Further, over the last three years, the market price of the stock has zoomed by 543 percent.
Mirza International is a small-cap footwear stock with a market capitalization of ₹4,280 crore. The company is into the manufacturing of finished leather, shoe uppers, shoes, and leather accessories. About 85% of the shoes manufactured by the company are exported. It has commenced the sale of footwear under its own brands, Red Tape and Oakridge, and these have received an encouraging response.
The company's consolidated net profit grew almost 3-fold to ₹41 crore in Q1FY23 as against ₹11.6 crore in the corresponding quarter last year. Total revenue increased by nearly 92.35% to ₹485.9 crore in the June-end quarter of FY23, compared to ₹252.6 crore in the same period last year.
Further, the company’s EBITDA grew almost two-fold to ₹76 crore in Q1FY23 as against ₹35.8 crore in the corresponding quarter of last year. Similarly, Mirza International's EBITDA margin increased to 15.71 percent year on year, from 14.22 percent, expanding by almost 149 bps.
Meanwhile, the board of directors of the company at their meeting held on December 10, 2021, approved the composite scheme of arrangement for the amalgamation of RTS Fashions Private Limited with and into Mirza International Limited, and the de-merger of branded business/ Redtape Business of Mirza International into Redtape Limited on an ongoing concern basis with effect from January 1, 2022, subject to requisite approvals, Business Standard reported.
Mirza International will issue 22 equity shares of ₹2 each to the shareholders of RTS Fashions for every 10 shares of ₹10 each held in the company. Redtape will issue 1 equity share to the shareholders of Mirza International for every 1 equity share held in the company.
Further, FIIs has turned bullish on the stock. From 1.7 percent in the September 2021 quarter, they increased their stake to 3.4% in the June 2022 quarter. While mutual funds increased their holdings to 3.07 percent from zero percent in the previous quarter.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.