Smallcap Mantra: Mirza International by Centrum Equity Research

We have lowered our revenue estimates by 10.7 per cent for FY17 and 12 per cent for FY18 on lower exports and leather sales, while PAT is lowered by 10.7 per cent for FY17 and 6.8 per cent for FY18 on lower revenues. We believe the merger of Genesis would help the company expand margins, while focus on sales of branded footwear under Red Tape, increasing capacity utilisation of the tannery through upholstery coupled with focus on new export destinations would help it expand revenue and profitability. Key export markets of the US and UK remain resilient despite overall slowdown, while the company plans to expand agent network in Germany and Dubai. We maintain our buy rating on the stock with a target price of Rs 185.