Mandhana Industries Ltd: Accumulate

CMP: Rs.12.35

A buy was initiated in Mandhana Industries Ltd considering its low debt of around Rs.800 Cr and P/BV ratio of 0.07 at around  Rs.13.50 some days back. Maintaining a positive stance, the investors are suggested to continue to accumulate the scrip on every decline since:

(i) This is the parent company of Mandhana Retail Ventures Ltd, which has a debt of only Rs.800 Cr, inspite of its sales getting hit by Narendra Modi's destructive economic policies, like demonetisation.

(ii) The bankers have already invoked, strategic debt restructuring (SDR) and the company is in the process of completing all the formalities of the invocation....

(iii) The Mandhana Retail Ventures Ltd (Rs.163.50) is backed by the Bollywood film star, Salman Khan and the ace investors Rakesh Jhunjhunwala and Ramesh Damani. Rakesh Jhunjhunwala is having a member in its board. The retail arm is almost debt free.
(iv) Yesterday, the percentage of deliverable quantity to the traded quantity was whopping 67.90%. Every trade needs a buyer and a seller for any transaction to get executed; so the percentage of delivery is important to understand the mood of the traders/investors.