Mirza International has target close to Rs 40: Tater

Tater told CNBC TV18, “We bet into Mirza International in the name of Red Tape Shoes which is available. Now apart from this the company also owns another brand, Oaktrak. Now the company is available on a market cap of just close to Rs 200 crore odd. Now if I see into the company’s performance, the company is going to post an Earnings Per Share (EPS) of close to Rs 4. Our company with a brand presence and it is expanding the capacity from 4 million capacity shoes to 10 million capacity shoes in – over next 3 years. I think this particular company with a brand name attached to it has a potential to be a multi-bagger in a longer term.”

He further added, “If I take a call onto the tannery business, this is one company which is vertically integrated its operations with its own design studio in Italy, London and other places. Now available at a market cap of Rs 25 odd, because it is a Re 1 paid up capital I guess. Now if I look into the total performance of the company, the company will double its sales in next 2-2.5 years and even on conservative side, I feel with its vertical integration, the company would post an EPS of Rs 8.5-9. Right now the company is going to post close to Rs 4-4.5 for the current fiscal. A 100% jump in 2.5 years.”

“The stock price will get rerated in terms of Price Earning (PE) expansion and we are targeting a PE of close to 10 times and on an estimated EPS of close to Rs 8 and Rs 9, the stock could even touch Rs 88-90 from 2.5 -3 years perspective. But we would be watching out the company’s performance and we have a modest target of close to Rs 40 for next 12 months onto the stock.”

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