Buy Mandhana Industries with a target at Rs 350: Ashish Maheshwari

In a chat with ET Now, Ashish Maheshwari, Blue Ocean Strategic Advisors, says expects Mandhana Retail Ventures to float at not less than Rs 500 crore market cap



ET Now: Why do you like Mandhana Industries?

Ashish Maheshwari: As far as Mandhana Industries is concerned, this is again a major player into textile space and in spite of a pretty bad time that textile industry has seen in the last couple of years this company has done extremely well. In FY14, their profit was Rs 59 crore which jumped to almost Rs 83 crore in FY15. This year, I am expecting profit to be Rs 100 crore plus. One more trigger which is in sight is they are demerging their retail venture -- Mandhana Retail Venture -- from the existing setup and every shareholder of Mandhana Industries who holds three shares will get two shares free of cost of Mandhana Retail Ventures which will unlock the value of this company. So in the next three months, once this value unlocking takes place, I am expecting Mandhana Retail Ventures will float at not less than Rs 500 crore market cap. So there is a clear visibility of upside in this particular stock and again it has a professional management and survived all the bad times. That is why I like this stock with a price target of Rs 350 once this demerger takes place.