A study of the past 50 baggers or even 100 baggers will confirm that in most cases the horse drifted ahead of the competition because of the jockey. Max Ventures & Industries Limited (MVIL) is one such bet that I have been tracking (and invested in) for more than 6 months now. This is one case when I do not have much to talk about the financials/ past performance of the company but the future prospects given the vision and capability of the promoter/ management.
MVIL was born as a result of a three-way demerger of the parent entity Max India Limited into three listed companies namely Max Financial Services Limited, Max India Limited and MVIL. As per management’s vision, MVIL handles the manufacturing business of speciality films and also aims to evaluate new ideas in the ‘wider world of business’, including but not limited to sectors such as education, real estate and technology taking cues from the economic and commercial reforms agenda of the present government, including ‘Make in India’, ‘Skill India’, ‘Digital India’, among others.
I have invested in the company because of the proven capability of Mr. Analjit Singh who will be the guiding force behind this new start-up kind of a company (the current market capitalization is just around Rs. 379 Cr.). He was behind the grand success of Max Group in such a short span of time. If you read his recent interviews, you will feel the fire that still resides in his belly to dream and achieve big. In one of his interviews, he stated that he is planning to go big in the education sector. On being asked as to what exactly he plans to do, he said that he is not willing to share the details till the time is right but he did mention that whatever it is, they will be number 1 or 2 in that, otherwise whats the use!
Another thing that I wish to mention is about some recent developments in the company like it taking up a very small stake in a start-up called Nykaa, or taking up a stake in Azure Hospitality, or selling a stake in MVIL to New York Life to raise money etc. These developments may seem trivial in themselves but over time, these small decisions will amount to big results given the proven capability of the Man to allocate capital and run business efficiently.
On rare occasions, one needs to look at just the big picture to take a call on the investment. I believe this is one such case!