Porinju Veliyath & Dolly Khanna Forum

Rakesh Jhunjhunwala holds 14%stake in mandhana. It made debue on exchange with a bang and has corrected significantly after that. With this valuations are looking cheap. Is it a good buy at current levels?

Any views on Mandha retail? With correction of 20% is it a good buy?

valuepicker wrote:Any views on Mandha retail? With correction of 20% is it a good buy?

A number of big investors are there in Mandhana Retail.

Rakesh Radhyshyam Jhunjhunwala 2813274
Nimish Chandulal Shah 232522
Ramesh Damani 227987
SI investments and Broking Pvt. Ltd. 324000

But parent co Mandhana Industries is not in good shape.

View of S. P. Tulsian

"Sonia: Your thoughts on The Mandhana Retail Ventures .

A: An isolated view on a company which is getting spun off after about 15 months of having approved by the board, one. Second, I have heard the management saying that retail venture has a debt of about Rs 7 crore but what about the debt of Rs 700-800 crore in the parent company Mandhana Industries , which is going for debt restructuring. The net worth of Rs 600 crore is getting a valuation closer to Rs 100 crore.

In the case of Mandhana Industries, even today we have not known the reasons of the majority of the independent directors resigning including the ex-Sebi chief, auditors resigning, the dividend having called off. Therefore, go by the management track record and just cannot get excited that The Mandhana Retail Ventures is getting listed.

All are talking about 'Being Human' but this brand is not owned by The Mandhana Retail Ventures. This is owned by Salman Khan Foundation and the licence may get transferred to other manufacturer. So there is a lot of gung-ho. I do not understand the reason for such a wide coverage and so much getting excited in comparing The Mandhana Retail Ventures with stocks like Arvind etc, who are perpetually own brands. So I will be taking a cautious and negative view on The Mandhana Retail Ventures going forward as well."

Read more at: http://www.moneycontrol.com/news/stocks ... 10121.html

So, I think it may be safer to avoid the stock in view of the concerns of S. P. Tulsian. Better to invest in Arvind Ltd or Indian Terrain.

Considering the business, the valuation was looking stable but the management of the company asking to give a second thought before investing in the stock. Investors should keep vision of 4-5 years to book better returns. Short term triggers are lagging. Inspite of saying short term triggers are lagging , company is inviting some troubles in the near term. This stock is not for the short term investors at all. Only those who can keep the stock with the vision of 3-4 years can afford to invest.
Source : http://www.niveza.in/Rakesh-Jhunjhunwal ... o-holdings

@what price they bought(big investors)we dont know.probably @10