Mirza International shares turn multibagger as stock gallops 107% in 7 days!

Shares of Mirza International climbed 10 per cent in Monday's trade, taking its seven-day dream run to 107 per cent. Thanks to the recent rally, there were buy orders for 2,37,310 Mirza International shares at 10 am, but there were no sell orders. A total of 8.64 lakh shares changed hands on the stock within the first hour of trade against the average of 7.29 lakh shares in the last two weeks.

On NSE as well, there were buy orders of 9,78,974 shares, but there was no seller. The footwear retailer now commands a market capitalisation of Rs 918.21 crore.

The stock rose 10 per cent to hit its upper circuit limit at Rs 66.44 on BSE. The stock has been climbing ahead of the listing of demerged entity Red Tape.

AR Ramachandran of Tips2trades said the Mirza International stock is in overbought terrioty on the daily chart, with the next resistance placed at Rs 68.45. Traders should be booking profits at current levels, he said adding that one can wait for a dip near support of Rs 36.60-40 to buy for better returns.

To recall, the promoter group-owned entity RTS Fashions was merged with Mirza International recently and that the amalgamated Mirza International, which manufacturers and markets leather footwear and finished leathers, de-merged its branded business into Red Tape, whose ex-date was March 29.

As per a BSE filing on April 15, the net worth of Mirza International immediately before demerger was Rs 726.91 crore. The net assets of demerged undertaking Red Tape stood at Rs 301.46 crore.

The Red Tape board recently approved the allotment of 13,82,01,900 shares of face value of Rs 2 each of Red Tape, credited as fully paid up to the equity shareholders of the Transferee Company - Mirza International, in the 1:1 share exchange ratio.

Apart from supplying products to global retailers, Mirza had in-house brands Red Tape and Oaktrak - in its portfolio. As per a report, Red Tape accounted for nearly 70 per cent of the combined company revenues and about 80 per cent of profit in the first nine months.

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