After analysing the historically available data about Max group of companies & by referring to some of the previous posts in this thread, I think below is the typical playbook followed by them in setting up any new business ventures;
#1. Venture in to a new sector with huge growth potential (Life Insurance, Healthcare, Health Insurance etc in the past).
#2. Capture a small portion of the overall market share (larger pie) and also have an early bird advantage.
#3. Establish a proof of concept by experimenting on pilot basis and by using an asset light model.
#4. Correct their mistakes & further optimize the proof of concept to achieve scale up & profitability.
#5. Try to achieve breakeven, Then slowly scale up & turn profitable by burning cash very conservatively (less leverage & debt).
#6. After a profitable model is established, Scale up the Bizz further using private partners/ equity dilution.
#7. Once the bizz reaches a reasonable size or Market cap, Sell to any PE or demerge to create value for shareholders.
I assume currently Max India is now at stages #3 – #5 of the above playbook. My assumption can be wrong also, Feel free to share your valuable thoughts.
I am not sure how many years they will take to move to next stages. Please note that there will be always a investment risk until they reach a reasonable size / profitability in this new Senior care sector.
D: Invested, I am not SEBI registered. Please don’t base your buy or sell decision based on my thought process.
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