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Salman Khan verdict: Being Human licensee 'Mandhana' BSE stock plunges sharply

Speed News Desk | Updated on: 5 April 2018, 16:42 IST

The Jodhpur court gave its verdict today in Blackbuck poaching case 1998, actor Salman Khan is found guilty and has been sentenced for five years. After the verdict, Mandhana Retail Ventures went down to 14%, early morning it was trading 3.4% lower at Rs 112.

After the verdict, ace investor Rakesh Jhunjhunwala's fortunes reduced. According to the latest, shareholding data (December 2017), he held 12.74% stake in Mandhana Retail.
 
Before the courts verdict, the stock increased Rs 132 in intra-day. A combined 151,843 shares exchanged hands on the counter on the BSE and NSE till 11:42 am. Mandhana Retail Ventures manufactures and sells Salman Khan's Being Human brand of apparel.

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A K Prabhakar, head of research at IDBI Capital said, “I think it is a knee-jerk reaction to the verdict and this was expected. Investors should not read much into the development. Though we do not track the stock very closely, the company, as per our assessment, has now diversified into other business segments as well. This augurs well for the overall business interest."

On December 23, 2010, Mandhana Industries Limited (MIL), entered into global exclusive Brand License Agreement with “Being Human – The Salman Khan Foundation” which was effective from January 1, 2011. They were allowed to use trademark & logo of “Being Human” for all clothes range / clothing lines.

The company terminated the Brand License Agreement on August 24, 2016 and entered into global exclusive Trademark License Agreement on the even date to design, manufacture, retail and distribute men’s wear, women’s wear and accessories under “Being Human” trademark until March 31, 2020.

Salman Khan endorses variety of brands such as Thums Up, Yatra.com, soap detergent Wheel, Britannia' s Tiger biscuits, Ranbaxy' s Revital, Rotomac Pen, etc.  

G Chokkalingam, founder and managing director of Equinomics Research said, “The development will not have any significant impact on the stock. The markets are already discounting this, as the case has been going on since the last 20 years. The company’s financials and/or image will not be impacted due to the conviction. That said, there has not been much growth in the company in the last nine months. Sales during the nine-months ended December 2017 have been stagnating as compared to the previous corresponding period. Even the profits have dipped around 50% year-on-year. The fall the stock is merely a knee-jerk reaction."

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First published: 5 April 2018, 16:42 IST
 
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