Few months back big bull Rakesh Jhunjhunwala has purchased 12.74% stake in The Mandhana Retail Ventures Ltd (TMRVL). You may also check the complete Rakesh Jhunjhunwala Portfolio. Rakesh Jhunjhunwala latest pick TMRVL jumped up after that and clocked a high of 246.30. But since then the stock has seen some correction and on 28th of March it has made a low of 201.30. After the correction the scrip seems to be back in track and we find some trading opportunity in the scrip now.
About The Company The Mandhana Retail Ventures Ltd
TMRVL was actually demerged from Mandhana Industries and when the demerger took place the companies debt stood nearly at 17.5 crores. But as Mr. Manish Mandhana the MD told in an interview that they have managed to reduce the debt to just over 7 crores in due course.
The company sells apparel under the brand name Being Human. The domestic business contribute to 91% of the revenue. They have 60 odd brand outlets out of which few are in international locations like France, Mauritius and Nepal. Apart from own outlets their brand is present in large retail stores like Shopper’s Stop, Lifestyle etc. The company also has a large distribution network.
The YOY revenue of the company has grown from 54.76 crores to 63.25 crores in Q2 FY17 and its a 15.5% growth. The YOY EBITDA of the company has grown from 8.91 crores to 14.15 crores in Q2 FY17 and its a 58.8% growth. Mr. Manish is hopeful to maintain an EBITDA margin of 24%-25% in the future. He is also expecting growth in revenue by 20%-25%.
Technical Aspect Of The Mandhana Retail Ventures Ltd
As per the Zerodha Kite daily chart we can see the correction is over in this Rakesh Jhunjhunwala latest pick and the daily SuperTrend indicator is trying to come back to buy mode. As both the fundamental and technical scenario is favoring bulls I suggest to add small quantity of this stock to your portfolio (CMP 229.65) and add more when SuperTrend buy is confirm in daily chart. We can safely expect 260-270 in short term. Medium term the stock also has a potential to become a multibagger.
Indrajit is a professional blogger and trading system developer. Amibroker expert, Wordpress expert, SEO expert and stock market analyst.Trading since 2002, he has started the journey of StockManiacs.net on 2008. He follows Indian and world stock markets closely.