Isn’t that type of bulk transaction mandatorily reported? Can promoters buy or sell in silence? I don’t know the rules of insider trading very clearly, I’m afraid.
@aashish2137
Promoter was very upbeat ( genuine ) on the prospect of Beinghuman. Even in their last clarification they still maintain their view.
In one their interview, they expect 40% Y-o-Y growth till 2020.
Quote
“We have aggressive growth plans,” said Manish Mandhana, Managing Director, Mandhana Industries, in an interview with The Hindu . “We want to become a complete family clothing brand, and grow 40-50 per cent per year until 2020. We will be available at over 2,000 outlets in India and abroad, compared to 700 now.” International sales in 16 countries contribute 25 per cent of Being Human’s revenue."
Unquote
If this is the case, then FY2019 EPS could be around Rs. 50…Retail alone…( 120 Cr Profit ).
50 x 10 PE = 1000
Its NO loss and NO gain for my buy price, Rs. 315 ( considering Zero value in Ex-date for Mandhana ). I may be wrong in my calculation but if that ( demerger ) happen, atleast my loss would be minimal.
Yeah, but if there is any possibility, however remote, that the books are fudged; then the entire thing (all projections, promoter enthusiasm, etc.) all and everything goes down the drain.
Mandhana has submitted shareholding pattern for the quarter ended June 2016
http://www.bseindia.com/corporates/shpSecurities.aspx?scripcd=533204&qtrid=90.00
EDIT: Retail shareholding is barely 5-6%. Outside of promoter group (100% pledged), about 20% is still institutional.
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Looks like some pledge has been invoked by the lenders and therefore the promoter holding might have come down.
Saying this as under ‘Disclosures–>Insider Trading 2015’ for Mandhana Industries on BSE it can be seen that around 24 lac shares held by Priyavrat Mandhana and Sudha Mandhana have been invoked on 12th and 13th July. Link given below:
http://www.bseindia.com/stock-share-price/stockreach_insidertrade_new.aspx?scripcode=533204&expandable=2
Discl - No investments in Mandhana. Please do your own due diligence.
Source? I don’t think promoters have any shares left to sell.
Hi Aashish2137.
I have modified the original post and it looks like promoter pledge being invoked rather than promoter selling.
Kind Regards.
Promoter holding over the last 3 quarters:
- Dec 15 - 72.33 (43.31 pledged)
- Mar 16 - 72.65 (46.13 pledged) (+.33)
- Jun 16 - 72.65 (72.73 pledged)
So who has traded in the last quarter?
Institutions - 5.45 (Jun) vs 5.78 (Mar) (-0.33)
Retail - 5.63 vs 4.68 (+0.95)
Other body corporates - 16.27 vs 17.1 (-0.83)
Lets put the speculation that promoters have been selling in the market to rest. Rather during Q4FY16 they had purchased 0.33% from the market.
Clearly institutions/ corporates have been selling and public at large is lapping it up at every fall. Are these institutions privy to some information that retail investors are not? Or are they just trying to limit their losses?
What I’m more worried about is, if the management is complying with SEBI rules and making appropriate disclosures, why is it silent on the operations? There are 2 outstanding points at the moment:
- When is the demerger happening?
- What about Being Human contract?
Both of them inter-linked since if Salman Khan’s trust ends this contract, there will be nothing to demerge (remember court has already approved this demerger though).
And if operations are as usual with Being Human being renegotiated under a new entity, as claimed by the management, why is market punishing this stock so heavily? Promoters generally come out with all guns firing even at a 30-40% fall since they are the biggest investors in the company but Mandhana has lost over 80% and promoters are still invisible. It’s baffling.
3 new updates on BSE
21 July - Shareholding pattern - june
22 July - Resignation of director
22 July - Rating downgrade
This is getting more worrying
There’s no need to worry. The company had released a doc yesterday (21 July) Clarifications and Updates to Investors’ Queries. This might give you some relief.
Dear Sir / Madam,
Sub: Clarifications and Updates to Investors’ queries
The Company, over the last few days, has been receiving several queries with respect to its business operations, demerger of retail business, continuity of Being Human Business and the like. In this regard, the company wishes to clarify that:
- There is no disruption to normal, ongoing business.
- The Company has already received the approval to its Scheme of Demerger of the retail business from the Hon’ble High Court vide order dated 29t hMarch, 2016. Pursuant to the said order, the Company is in the process of demerging its current retail business into the Resulting Company, Mandhana Retail Ventures Limited. All current and future retail businesses of Mandhana Industries Ltd will henceforth be carried out in the Resulting Company.
- Subsequent to approval to the Scheme, the Resulting Company, Mandhana Retail Ventures Limited is in the process of signing a new contract with the Being Human - The Salman Khan Foundation, the specifics of which are under negotiation with them.
The Company further wishes to clarify that the retail business of Being Human continues to do extremely well and plans are in place to ensure robust growth in the business, going forward.
We trust, the above clarifies the Company’s position. You are requested to disseminate the above to the Investors and all other stakeholders.
Thanking you.
Yours faithfully,
for MANDHANA INDUSTRIES LIMITED
PURUSHOTTAM C. MANDHANA
(Chairman & Managing Director)
Here’s the link to the doc (pdf) on BSE India - http://corporates.bseindia.com/xml-data/corpfiling/AttachHis/3C620901_ABF7_4A4E_9B90_CD841F0D850A_143025.pdf
But still worry about why director resigned - BSEINDIA
Link read:
Mandhana Industries Ltd has informed BSE that Mr. Biharilal C. Mandhana, Executive Director of the Company has ceased to be Director of the Company with effect from June 10, 2016, on account of his ailing health.
The Company places on record the valuable contribution of Mr. Biharilal C. Mandhana during his extensive tenure as Director with the Company.
What’s your views?
Oops, my fault. Yeah, there’s no announcement after 21 June.
Not a good news. 2 directors have resigned recently. If the Company was going through negative PR, this news is only adding fuel to the fire. Something could be seriously wrong internally.
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Mandhana Industries announced that CARE has revised its rating for Non - Convertible Debentures and it stands at CARE C (Single C) and for Long Term and Short Term Banking facilities, it stands at CARE D (Single D).
So does anyone know of reasons/s or can make logical arguments for this massive fall
Another director (Mr. Ghyanendra Nath Bajpai) resigns. I think the company will run out of minimum number of directors required before hitting rock bottom.
promoters are not giving clear response or any reply what is going on internally.Looks like similar cases of recent Ricoh ,Treehouse etc.Lets wait n watch to clear the mud… Something wrong but no one outside Co. do know? probably not yet…
Dear sowmay,
Treehouse story unfolded last Nov`15.Scrip started from about 450 to 38
now!!!Main reason corpo.governance,transperancy…Prom.holding is 20% that
too pledged almost 100%,Huge receivable 626 million at the time recoverable
very slowly.All was hush hush n big investors sniffed wrong n offloaded
quickly.Then came merger plan with Zee Learn at lower valuation of
treehouse fell apart I guess.i wanted to invest but waiting for right
valuation n luckily
avoided the disaster.28/7/16 result date lets see what is in store for this
saga.
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Hello to all, i am new learner in this community, following this one for long,
recent U turn of mandhana…today up by 4.9 %,