Mirza International hits record high; stock zooms 51% in four weeks

Shares of Mirza International hit a record high of Rs 259.45, surging 10 per cent on the BSE in Thursday's intra-day trade, in an otherwise range-bound market.

In the past four weeks, the stock of the leather and leather products company has zoomed 51 per cent after it reported an over three-fold jump in consolidated profit after tax (PAT) of Rs 30.24 crore in March 2022 quarter (Q4FY22). It had posted PAT of Rs 8.89 crore in Q4FY21.

In comparison, the S&P BSE Sensex was up less than 1 per cent during the period. The company’s revenue during the quarter jumped 42 per cent year on year (YoY) at Rs 445 crore as against Rs 313 crore in the year-ago quarter.

For the financial year 2021-22 (FY22), Mirza International's net profit rose nearly 14 times to Rs 112.86 crore from Rs 8.33 crore in FY21. While revenue from operations grew 60 per cent YoY at Rs 1,678 crore from Rs 1,049 crore in the previous fiscal.

Mirza International is engaged in design, development, manufacturing, marketing, trading, export and retailing of leather footwear, sports shoes, garments & apparels, leather goods and accessories, and other related activities. The company also owns and operates a leather tannery for captive consumption.

Meanwhile, the board of directors of the company at their meeting held on December 10, 2021, had approved the composite scheme of arrangement for amalgamation of RTS Fashions Private Limited with and into Mirza international Limited, and de-merger of branded business/Redtape Business of Mirza International into Redtape Limited ongoing concern basis with effect from January 1, 2022, subject to requisite approvals.

Mirza International will issue 22 equity shares of Rs 2 each to the shareholders of RTS Fashions for every 10 shares of Rs 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.

In order to streamline various activities of Mirza Group, unlock the true value of its businesses, achieve management efficiencies and accelerated growth, the management proposed to consolidate entire overseas business into Mirza International; and to hive off branded business/REDT APE Business into a separate company.