Thank You @vireshsangwan for starting this thread. This is my first post, so would definitely like feedback on my ideas and thought process.
Firstly I would like to comment on the time horizon with these companies, with no visible triggers that we are discussing here, these companies are long term bets, and coupled with the fact that these are startups, it makes sense to invest with a horizon of a minimum of 3-5 years.
However the advantage to holding these companies is that they can potentially become huge in that time horizon if things go right.
These are high risk, high reward companies with no thesis apart from a big promoter group backing them and so should be sized appropriately at a portfolio level to protect from the downside. This is like venture investing with equity.
On the ideas front, Max India, which is the holding company of Antara Senior Living is one of the ideas I’ve been tracking closely. It is related to the Max Group headed by Analjit Singh which after selling off Max Hospitals to Private Equity has interests in Real Estate, Insurance and Senior Care.
The interesting thing about this idea is that it is operating in the Senior Care space, which is poised to see huge growth on the demand side. Typically in these industries, how a company captures the supply side and is able to reach best profitability profile is what matters the most.
The management is completely professional, the business is being headed by a professional who was part of Max Hospitals team and he is being assisted by Analjit Singh’s daughter Tara Singh Vachani. So the management does have experience with scaling these business ideas and taking them to the next level.
The thing that attracts me on the valuations front is that the company holds treasury assets roughly valued at 450 Crores but the market cap is less than that. These assets would be used for the scaling up the four business verticals. In my view, this roughly means that the market feels that the future value of these investments is not even yielding the same present value. Which attracts me to the company.
There is a detailed thread on Max India which you can perhaps look at if you are interested in the business.
Disc: Invested
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