Mandhana’s net profit up 3.8 per cent

Net profit of Mandhana Industries rose 3.8 per cent in the fourth quarter of March 2016 over the fourth quarter of March 2015. Net sales saw a 5.9 per cent rise.

Mandhana manufactures textiles and garments with state-of-the-art infrastructure. Its scope of business includes designing, yarn dyeing, weaving, processing, printing and garment manufacturing. The company is in the process of demerging its current retail business into a company, Mandhana Retail Ventures. All current and future retail businesses of Mandhana Industries will henceforth be carried out in Mandhana Retail Ventures.

Mandhana Industries is associated with Salman Khan's NGO Being Human Foundation. It has an exclusive license agreement with Being Human for designing, marketing and distributing Being Human clothing products. Mandhana Retail Ventures is in the process of signing a new contract with Being Human.

The small-cap company has an equity capital of Rs 33.12 crores. Face value per share is Rs 10. Mandhana is a multi divisional textile company spread over multiple geographical locations. After the demerger of the retail business Mandhana may not offer much value to shareholders. In the last few years, the stock has enjoyed good investor interest due to the company's tie-up with Being Human, which although smaller in size was the most profitable and high growth business.