Max Ventures & Industries Limited: A bet on the jockey, not the horse

max ventures and industries logoA 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!

7 Replies to “Max Ventures & Industries Limited: A bet on the jockey, not the horse”

    • Hi Sabarish. I am not a SEBI registered analyst so can not advice on investments. But yes, I am holding this for another 5 years at least! Of course, I sell if fundamentals/ story changes, else I am sitting tight.

  1. Dear Parasbhai,
    Toppan has = 49% in MSF, while MV&Ind Ltd = 51% in MSF, I think in future the demerger will take place from Max Ventures Ind. ltd and Max speciality films will be seperate entity.
    Again if we buy share of Max Ventures & Industries ltd than we will also get the shares of MSF in future when demerger gets happened.
    Bcoz. toppan paid 104/- per share for the MSF and current rate of the Max Ventures & Ind. ltd is below that price, please make us educated in this matter.

    • Dear Haresh. Apologies for a late reply. Have been keeping a bit busy. As for your query, I believe there are some events which you can not predict or for that matter, cannot even assign a probability it. Max Ventures has been recently formed and is just about starting its journey as a more focused organization with new businesses. Predicting a demerger down the line is not a fruitful exercise in my view because we don’t know if and when it will happen. On the other hand, it will be important to see how Toppan entering the scheme of things will affect the business in the long run. Secondly, how the new businesses will shape up in years to come. I am going to post a update to this post soon where I will try to give my view on the same. Keep reading 🙂

      • Parasbhai
        Thanks for your reply.

        I will be awaiting for your vision and research in regard to the Max Ventures
        will surely see the views expressed by you.

        Kind Regards,

  2. Pingback: Update: Max Ventures & Industries Limited - ValueBagger.Com

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