Singh Ef­fect: Max Ven­tures Stock Up 45% This Year

The Economic Times - - Finance & Commodities - Ra­jesh.Mas­caren­has

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%.


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