Mandhana Industries Extends Gains After Pact With Salman Khan's Foundation

Mandhana Industries shares were locked up in upper circuit for eighth straight day, after rising by their maximum daily limit of 5 per cent. Strong buying has been witnessed in Mandhana Industries since the textile company last week disclosed that it has finalised an agreement with actor Salman Khan's Being Human Foundation to sell products under 'Being Human' brand.  

Mandhana Industries in a statement said the retail venture of the company, Mandhana Retail Ventures Limited (MRVL), "is the exclusive licensee to market, distribute and sell the products under the trademark of brand 'Being Human'". Mandhana Industries has demerged its retail business under Mandhana Retail Ventures. 

Mandhana Industries in 2012 had launched apparels and accessories under 'Being Human' brand under license arrangement with Salman Khan's charitable trust. Mandhana Industries booked revenues of Rs.172 crore in FY15 from the brand, according to a report from Care Ratings.

Despite the recent rally, Mandhana Industries shares are down nearly 65 per cent from their 52-week high of Rs 344.95, hit in January this year. 

Its non-convertible debentures and long term and short term bank facilities were downgraded by rating agency Care, which cited "stretched working capital cycle on account of elongation in its receivables position." Uncertainty over renewal of 'Being Human' contract also weighed on the stock, analysts said.

Mandhana Industries had posted a net profit of Rs 57 crore on revenue of Rs 1,646.61 crore in FY15-16. 

At 11:30 a.m., shares of Mandhana Industries were locked at 5 per cent upper circuit of Rs 117.1 as compared to a 0.30 per cent gain in Sensex.