Mirza International Limited

Consumer Cyclical — Footwear & Accessories · NSE

₹28.15+₹0.69 (+2.51%)

DalalBaazaar Score

32 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

The 60-second version of Mirza International Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Mirza International Limited, together with its subsidiaries, manufactures, markets, and sells leather footwear products in India, the United Kingdom, the United States, and internationally. It operates in two segments, Footwear and Tannery.

IndustryFootwear & Accessories

SectorConsumer Cyclical

Employees1,288

Annual revenue₹500 Cr

How does it make money?

Turns over ₹500 Cr a year. Of every ₹100 of sales, about ₹-0 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation. Each of its 1,288 employees supports ₹38.8 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹38.8 lakh

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 1.3% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE25.9%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -17% while net margin moved -103% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-17%

Margin effect-103%

DalalBaazaar Score

32/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 6.0% a year

Quality vs. Valuation

Company Quality

28/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

36/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

15.0x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 61% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 5.0% to -0.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 7.8% to 1.3% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 4 high

🔴High leverageFinancial
Debt/Equity of 3.71x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.0x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹1 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 5.9 points, from 11.3% to 5.3%.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 61% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 11.3% to 5.3%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 3.71x. Interest is payable whether or not the business has a good year.
Returns on shareholder capital are falling
ROE has dropped from 5.0% to -0.1%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 3%✓ 5.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Interest cover stays above 3x✗ 1.0x
How much operating profit can fall before interest stops being comfortably covered.
3Free cash flow remains positive✓ ₹27 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 1.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 2 neutral · 6 weak

Market Cap

₹389 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

0.69x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-1.62

Loss-making

Negative earnings per share — the business is losing money

ROE

-0.1%

Weak

Weak capital efficiency

ROCE

1.3%

Weak

Low return on total capital employed

Debt/Equity

3.71x

High

High leverage

Revenue Growth (YoY)

-9.6%

Shrinking

Sales are contracting

Profit Growth (YoY)

82.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹27 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

4.9x

Operating Margin

-3.3%

Weak

Thin margins leave little room for error

Net Margin

-4.4%

Weak

Very little revenue reaches the bottom line

Current Ratio

3.67

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.07

Defensive

Steadier than the market

52W Range Position

17%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

28.2 / 30.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

38.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹602 Cr	₹598 Cr	₹548 Cr	₹500 Cr	-6.0%
EBITDA	₹68 Cr	₹61 Cr	₹39 Cr	₹27 Cr	-26.8%
EBITDA Margin	11.3%	10.3%	7.1%	5.3%	—
PAT (Net Profit)	₹26 Cr	₹12 Cr	-₹3 Cr	-₹1 Cr	—
EPS	₹1.91	₹0.87	₹-0.24	₹-0.04	—
ROE	5.0%	2.2%	-0.6%	-0.1%	—
ROCE	7.8%	4.8%	1.2%	1.3%	—
Total Debt	₹54 Cr	₹42 Cr	₹54 Cr	₹21 Cr	-27.2%
Free Cash Flow	-₹7 Cr	₹13 Cr	-₹18 Cr	₹27 Cr	—

🔴 Revenue has shrunk at 6.0% a year over 3 years.

🔴 EBITDA has shrunk at 26.8% a year over 3 years.

🔴 EBITDA Margin has fallen from 11.3% to 5.3% over 3 years (-5.9 pts).

🔴 PAT (Net Profit) has turned negative, from ₹26 Cr to -₹1 Cr.

🔴 EPS has turned negative, from ₹1.91 to ₹-0.04.

🔴 ROE has fallen from 5.0% to -0.1% over 3 years (-5.1 pts).

🔴 ROCE has fallen from 7.8% to 1.3% over 3 years (-6.5 pts).

🟢 Total Debt has shrunk at 27.2% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹7 Cr to ₹27 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹692 Cr

Total Liabilities

₹129 Cr

Cash & Equivalents

₹9 Cr

Operating Cash Flow

₹44 Cr

Capex

-₹17 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

73.5%

Corporate Actions

Ex-Dividend Date

18 Feb 2020

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

3 mixed3 general

Why Is Mirza International Share Price Falling: Key Reasons and Investor Analysis 2026

Univest, 07 MayPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Mirza International reports consolidated net loss of Rs 13.22 crore in the March 2026 quarter

Business Standard, 30 MayResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Mirza International incorporates wholly owned footwear subsidiary

scanx.trade, 09 Oct

Why Investors Shouldn't Be Surprised By Bhartiya International Ltd.'s (NSE:BIL) 25% Share Price Surge

Simply Wall Street, 04 FebPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Mirza International Limited (NSE: MIRZAINT) Stock Falls Over 5% Amid Profit Booking

Kalkine India, 13 Jul

Mirza International to hold 47th AGM on August 1

scanx.trade, 03 Jul

Watch Items

Revenue growth is negative (-9.6%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

MiddlingFinancial Health · Valuation

WeakBusiness Quality · Growth · Profitability · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 4 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑