1 MIRZAINT share price target reports by brokerages below. See what is analyst's view on MIRZAINT share price forecast, rating, estimates, valuation and prediction behind the target. You may use these research report forecasts for long-term to medium term for your investment or trades in 2020.
We believe that lower margins, elevated working capital and increased borrowings would negatively impact the cash flows of the company. The stock is trading at PE of 14.1x and 11x based on FY20E and FY21E revised EPS of Rs 4 (vs Rs 4.6 earlier) and Rs 5.2 (vs Rs 5.5 earlier), respectively. We recommend SELL (Vs Reduce earlier) on the stock with revised target price of Rs 52 (Vs Rs 55 earlier), valued at 10x FY21E EPS.
With product launches, the company has broadened its operations in different segments of footwear increasing its target market. On management’s lower domestic revenue growth guidance, rupee depreciation, uncertain stand on exports, we cut our FY19E EBITDA by 13.5% and by 13.7% for FY20E. Higher interest due to the greater debt burden and increasing advertisement cost, we conservatively cut our FY19E PAT by 35.5% and by 40% for FY20. We maintain a “BUY” recommendation, valuing at 9.8x (10-year average of 1 year Forward Earnings) of the FY20E EPS with a revised target price of Rs. 62 representing an upside potential of 19%.
We have cut our EPS estimates for FY19E & FY20E by 40% and 44% respectively factoring in lower margins, expected slowdown in sales for FY20E due to consolidation of business and higher debt and working capital. The stock is trading at PE of 16.3x and 13.2x based on FY19E and FY20E revised EPS of Rs 3.4 (vs Rs 5.7) and Rs 4.2 (vs Rs 7.4), respectively. We downgrade our rating on the stock to Sell (Vs Buy earlier) with revised target price of Rs 50 (Vs Rs 104 earlier). Our downgrade is based on increased near to medium term risk in its domestic operations and continuous disappointment in exports business which can negatively impact its margins, returns ratios and cash flows.
SOURCE: Data from D'Market via Quandl. Intraday data delayed 15 minutes.
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