History of Consistently Increasing Sales, Earnings & Cash Flow
Please refer analysis link.
Durable Competitive Advantage
Yes. Through power of brands, owning manufacturing, designing facilities & cost-optimizations.
Future Growth Drivers
Current growth in Indian retail market & Promotion of export market policies should help the company well.
Conservative Debt (long term debt < 3 Net Profit)
Current Liabilities is around 100 crore & Latest net profit is around 44 crores. So pass.
Return on Equity must be Above Average
ROE is 18+ and above the required 15.
Low CAPEX required to maintain current operations
Promoter Holding %, Management is holding / buying the stock
Promoter Holding 66%, Promoters is buying back more shares.
Price is Under Valued (< intrinsic value)
Almost on the same bar.
Stock Price is consolidating (now)
Stock Price is growing in past years along with EPS growth
Yes, but slow
Additional Futurecaps Checklist
PE, PB Ratio
PE is around 7 and PB is around 1 which are good ratios in current market boom scenario.
Cash Flow Positive, Net Profit % greater than 8%
Cash Flow from operating activity is positive. Net Profit is less than 8% as this sector requires high amount of ads & operating expenses.
Paying Dividends, Tax
EPS Growth Rate
10-20% for the past 3 years, thought the latest year shows flat.
Expected Gain in 10 Years
2X-5X in 5 years; The EPS growth is slow – so do not expect high gains.
Power of Brand
Branding attracts more sales, more profit margins!
Corporate Governance, Reputation of Leaders
Good governance history.
No fraud reported.
Here by we declare that Mirza International is a multibagger with possible 2X-5X gain in next 5 years; watch quarterly results carefully for hold/sell decisions.
It is a potential multibagger like Page Industries with good brands under hold, but watch the quarterly results carefully.
1-2% of your portfolio.
Futurecaps recommends 20 to 25 multibaggers per year, we recommend a 25% to 50% allocation of your savings in equity. The stocks recommended here are gone through Analysts of several years experience in stock market. Although they were successful in predicting future multibaggers, the overall stock market is a risky game. So we recommend the reader to put his/her own thoughts & invest wisely.