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Check Before You Invest : Mirza International Ltd

BSE: 526642 NSE: MIRZAINT ISIN: INE771A01026
  |   Sector:  FMCG   |   Industry:  Footwear

Snapshot

Q.1 Which industry/sub-sector does Mirza International Ltd belong to?
Mirza International Ltd belongs to the FMCG sector, operating specifically within the Footwear segment.
Q.2 Is Mirza International Ltd a good quality company?
Mirza International Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Mirza International Ltd undervalued or overvalued?
Mirza International Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 31.27 26.77
Price to Book 0.88 1.33
Price to Sales 0.77 0.95
EV to EBITDA 12.13 11.61
Q.4 Is Mirza International Ltd a good buy now?
Mirza International Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Mirza International Ltd?
Mirza International Ltd revenue growth is -5.5% for FY-2025, which is above its 5-year CAGR of -14.68%, indicating faster growth.

Q.2 Gross Profit margin of Mirza International Ltd?
Mirza International Ltd Gross profit margin which is the profit after deduction of direct costs, is 4.5% for FY-2025, which is below its 5-year median of 7.7%, indicating decreasing margins.

Q.3 Operating Profit Margin of Mirza International Ltd?
Mirza International Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 5.78% for FY-2025, which is below its 5-year median of 9.36% indicating decreasing margins.

Q.4 Net Profit Margin of Mirza International Ltd?
Mirza International Ltd Net Profit Margin is -0.7% for FY-2025, is below its 5-year median of 2.23%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 4.5 7.7
Operating Profit Margin (%) 5.78 9.36
Net Profit Margin (%) -0.7 2.23

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Mirza International Ltd?
Mirza International Ltd Return on Asset is -0.67%, which is below its 5-year historical median of 2.26%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Mirza International Ltd?
Mirza International Ltd Return on capital employed is 0.86% for FY-2025, which is below its 5-year historical median of 6.08%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Mirza International Ltd?
Mirza International Ltd Return on equity is -0.86% for FY-2025, which is below its 5-year historical median of 2.91%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Mirza International Ltd?
Mirza International Ltd Cash conversion cycle is 96 days, above its 5-year historical median of 87 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.96 1.01
ROE (%) -0.86 2.91
ROCE (%) 0.86 6.08
Cash Conversion Cycle 96 days 87 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Mirza International Ltd?
Mirza International Ltd Debt-to-Equity ratio is 0.09, which is lower the industry average of 0.21, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Mirza International Ltd?
Mirza International Ltd Debt to cash flow from operations is 1.97, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Mirza International Ltd?

Q.1 Promoter shareholding and pledge status of Mirza International Ltd?
Promoters hold 72.99% of the Mirza International Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Mirza International Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Mirza International Ltd vs industry peers?
Mirza International Ltd revenue CAGR is -14.68%, compared to the industry median CAGR of 0.00%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -5.5 0
Gross Profit Growth (%) -43.5 -0.7
Operating Profit Growth (%) -29.8 -1.3
Net Profit Growth (%) -130.8 0.1
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.96 1
ROE (%) -0.86 5.51
ROCE (%) 0.86 8.91
Cash Conversion Cycle (days) 95.74 78

Valuation & price assessment

Q.1 Stock return of Mirza International Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of -11.1% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
-11.1% -10.2% -20.1% -5.8%
Q.2 Valuation ratios of Mirza International Ltd vs historical?
The current P/E ratio of 31.27 is higher than its historical median of 26.77, indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 31.27 26.77 31.85
Price to Book 0.88 1.33 1.33
Price to Sales 0.77 0.95 0.96
EV to EBITDA 12.13 11.61 11.56

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