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tigershark
Senior Member
Joined: 13/Oct/2006
Location: India
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Posts: 3542
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   Posted: 24/Nov/2006 at 1:30pm |
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very true basant just skipped my mind, thks for the reminder so that
brings us to the fact that hdfc still remains numero uno and will
continue to do so
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understanding both the power of compound return and the difficulty getting it is the heart and soul of understanding a lot of things
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nav_1996
Senior Member
Joined: 08/Sep/2006
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Posts: 803
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Posted: 24/Nov/2006 at 2:22pm |
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Look at Bajaj Allianz closely. Kind of brand equity Bajaj enjoys in semi-urban and rural India is unmatched (only Tata can match that but guess they are too busy chasing global dream). Insurance business and Trust go together. Bajaj Allianz was number 7th 3-4 years ago and today they are challenging ICICI for top position. I would bet on them and ICICI for their executing capabilities. Thus for a given size Max Newyork should be valued at half of Bajaj Allianz as immediate addressable opportunity for them is much smaller. Is insurance valuation itself correct is another matter?
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nikhil090
Senior Member
Joined: 06/Nov/2006
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Posts: 1344
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Posted: 27/Nov/2006 at 4:52pm |
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Hi everybody,
Any views on Max India. They are into 3 businesses.They have a hospital business which they are setting quite agressively in and around Delhi. They plan to have 1500 rooms by 2008, expect to breakeven by that time in this business. Currently they are having around 700+ rooms in and around Delhi which are running at average of 60% occupancy. Max India holds 70% in this business. The 2nd business as we know already is INsurance. They are into life insurance only holding 74%. They are growing pretty fast, in line with the industry. Max NY life agents are considered to be more informed. They receive more training than any other life insurance agents. consequently the productivity of these agents is better than others. 3rd business is the speciality business which is profitable, though small. Besides this, the company has good cash reserves in excess of $100 million. another important point is that Warburg Pincus holds more than 37% equity in this company. they are funding the hospital business also. The total marketcap is around $800 million. Seems to have good pedigree and doing good work in emerging sectors. what is your view?
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basant
Admin Group
Joined: 01/Jan/2006
Location: India
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Posts: 18403
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Posted: 27/Nov/2006 at 5:22pm |
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Max seems a good bet - nothing on the EPS/PE front but it still has a strong underlying business that could become very valuable. I am not that bullish on the hospital business though.
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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nikhil090
Senior Member
Joined: 06/Nov/2006
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Posts: 1344
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Posted: 27/Nov/2006 at 6:22pm |
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Any specific reason for not liking the hospital business. THis business has good potential - size of opportunity is big (medical tourism can become a reality).Also the reputation of the hospital improves with time. There would also be very little "Raw Material" requirement as such and possibility of bad debt would also be very low. Therefore this would be an annuity kind of business, after development. (say an NTPC of healthcare)
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basant
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Joined: 01/Jan/2006
Location: India
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Posted: 27/Nov/2006 at 9:05pm |
Hospital needs huge doses of capital to increase volume Apollo has done nothing over the past 15 years maybe the management is bad but volume expansion is extremely hard to generate unless capex is put up.
YOu may say that it is like a hotel business but there is no cyclicality so we cannot play iot like we do in case of hotels (right now hotels are in demand).
On the other hand hospitals are recession free and in case of a recession hospitals will do brisk business as people suffer from heart attacks!!!
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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anurag
Newbie
Joined: 28/Sep/2006
Location: India
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Posts: 8
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Posted: 10/Dec/2006 at 10:48am |
Try out Exide Industries to play the insurance boom........ It has 50% stake in ING VYSYA's Life Insurance Subsidiary and the value of its investment in IVLI subsidiary has increased from 290 crores to 800 crores in one year. Also, ING VYSYA is targetting a premium collection of 5000 crores by 2010 and currently it is expected to be at 700 crores by end of this year.
So, you get indirect stake in Life Insurance business and a stake in India's largest battery maker who has come up with decent results and is available at around 39 rupees.
Take your call.
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basant
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Posted: 10/Dec/2006 at 11:31am |
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Yes, ING also holds a lot opf promise Reetesh has analysed this one in detail I presume.
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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