Shares of Mirza International notched around 10 percent gains on Friday’s early trades to reach an intraday high of ₹ 60.30 apiece on the National Stock Exchange (NSE). Its shares hit the upper circuit for the third straight day, in an otherwise subdued market.
Its share price has been on an uptrend and has gained a whopping 72% in the past five days. In fact, it has become a multibagger in merely nine trading days, as its share price zoomed from ₹ 30.02 apiece to the current levels and gave multibagger returns of 101%.
Mirza International Ltd manufactures and exports finished leather, footwear, apparel and allied products. The recent rally has pushed its market capitalization to ₹ 758 crores. It started gaining after its shares started trading ex-Red Tape on March 28, 2023.
Red Tape was demerged from the company and will soon be listed on the exchanges. According to an exchange filing on April 15, the net worth of the company immediately before the demerger was ₹ 726 crores, while the net assets of Red Tape, the demerged undertaking stood at ₹ 301.46 crores.
The company had fixed March 29, 2023, as the record date for determining the eligibility of its shareholders for the allotment of Red Tape’s shares. One equity share of face value of ₹ 2 each of Red Tape will be allotted for every share of face value of ₹ 2 each held in Mirza International.
Meanwhile, RTS Fashions, an entity owned by Mirza International’s promoter group, was recently merged with the company.
The company’s management said that it is confident that this measure will likely drive a more focused growth strategy for their respective businesses and unleash their true potential.
Mirza International has a return on equity of 16.15% and an ideal debt-to-equity ratio of 0.10. It has a good dividend yield of 2.26%. Its shares were trading at a price-to-earnings ratio of 4.08, which is lower than the industry P/E of 62.09, indicating that the stock is undervalued as compared to its peers.
Written by Simran Bafna
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
