Singh Effect: Max Ventures Stock Up 45% This Year
Mumbai: The stock of Max Ventures and Industries, promoted by billionaire industrialist Analjit Singh, has risen nearly 45% so far this year as affluent investors lapped up the scrip on expectation that Singh will create a huge value for the company, which currently has presence in four verticals — manufacturing, real estate, education and investments. Last week, the company sold 49% stake in its fully-owned subsidiary Max Speciality Films for .₹ 200 crore to Japan-based Toppan Printing. The deal, which values Max Speciality Fims at .₹ 408 crore, saw Max Ventures’ stock surging 8% to .₹ 88.95 on Monday.
Industry experts peg the market capitaliation of Max Ventures’ other three verticals, including real estate, education and IT at .₹ 475 crore, which makes the stock look cheaper.
“Though majority of the revenue comes from Max Speciality Films, the business plans of the other three verticals are yet to be disclosed by the company. Hence, the market has not given it sufficient valuation,” said Kush Katakia, CEO, Beanstalk Advisory. “As substantial money has been invested in the company by promoters, New York Life Insurance and Toppan Printing, there is definitely good value in the stock over the long run,” he added. Max Venture, which was formed after the demerger of Max India, has four verticals — Max Speciality Films, Max Estates (Real Estate), Max Learning (Education) and Max I (special purpose vehicle). Early this year, New York Life Insurance Company took 22.51% stake in Max Venture for .₹ 121 crore. Last year, the promoters made a futile attempt to raise their stake holding to 75%.