{"id":1058,"date":"2019-08-19T21:06:00","date_gmt":"2019-08-19T21:06:00","guid":{"rendered":"http:\/\/oscillationss.blogspot.com\/?p=1058"},"modified":"2019-08-19T21:06:00","modified_gmt":"2019-08-19T21:06:00","slug":"max-india-max-ventures-and-analjit-singh-money-velocity-and-salvation","status":"publish","type":"post","link":"https:\/\/oscillations.in\/?p=1058","title":{"rendered":"Max India,Max ventures and Analjit singh:Money,Velocity and Salvation"},"content":{"rendered":"
\n<\/p>\n
\nI see people analyzing a company\u2026they
\ntry to extract the gold from financial data, numbers\u2026investing all their
\nefforts on the financial data as if the figures of turnover, profits are
\ngenerated in auto mode by some business entity. But no such entity
\nexists\u2026behind all these superlative businesses, giant economies is just one
\nfactor-Human factor. The figures we try to use to judge the worthiness of a
\nbusiness are nothing but a quantification of human efforts\u2026.and bad news is
\nthat even this quantification can\u2019t capture the force behind human efforts-wisdom.
\nIt counts the money but leaves the velocity….human spirit, creativity and
\nbravery is the Velocity. Total money in an economy is a function of base money
\nmultiplied by velocity of money.<\/div>\n
\n<\/div>\n
\nAny central bank can increase the
\nbase money but still it does not ensure that this will increase the liquidity
\nin any economy. The best example for the same is the massive quantitative
\neasing by the US Fed where it raised the money base from some $ 900 billion in
\n2008 to $ 4 trillion in 2014 but still it could not impact anything-neither
\ninflation rate as was feared but nor the consumption (and GDP) <\/span>as was expected because if money base was
\nincreased 4 times velocity of money came down to 4 from 17 (factor of 4).
\nThat\u2019s why it is so difficult to channelize any economy in the desired
\ndirection. Due to uncontrolled factors like this we still do not have any
\nuniversal growth formula just like E=MC2<\/sup>.<\/div>\n
\n<\/div>\n
\nEconomists still can\u2019t foresee how
\nthe velocity of money will change. There is no trend analysis possible because
\npast experiences do not provide any such trends relative to supply of base
\nmoney. <\/span>Money is a powerful tool in
\ndirecting any economy but only when money velocity is stable. So the most
\nimportant tool in the hands of central bank is hampered by the inability to
\nmeasure the velocity factor and same thing is true for stock analysis. We try
\nto use the best possible fundamental analysis tools to judge the validity and
\nvalue of a stock\u2026but still these tools are ineffective in valuing the force
\nbehind all performance indicators which is the-Human factor.<\/div>\n
\n<\/div>\n
\nAlso, sometimes I feel that
\neconomists can\u2019t measure or judge this Velocity (V) because in the money
\nequation (M*V=P*T or GDP) except V all other factors are independent of each
\nother-Money base is an individual independent entity, so is Price level and
\nvolume of transactions. But here V is just an expression expressing the use of
\nmoney (in fact, decision to use money) by general public…means V does not
\ndirect or establish anything because it is not an independent entity. Velocity
\ndoes not direct the prices of goods but individual choices of demand and supply. More on this some other time<\/span>. But in driving the
\nperformance of a company the velocity of the human factor is indeed independent
\nof all other variables and that\u2019s why this is so important.<\/div>\n
\n<\/div>\n
\nSo in most of the cases, I have
\nfound that we can focus on human being alone and we can find the gems. I have
\nfound some of my best picks by just valuing the human factor behind the
\ncompany-Kiran Mazumdar shaw (Biocon), Vikas Oberoi (Oberoi Realty), Ajay
\nPiramal (Piramal Enterprises), Analjit singh (Max Group), PRS Oberoi (EIH
\nHotel) and from current big bets Dr. Devi shetty (Narayana Hrudayalaya).<\/div>\n
\n<\/div>\n
\nToday I am focusing again on Mr.
\nAnaljit singh who in my view has fantastic eye for gauging the next big thing
\nin the business. He was one of the first to enter mobile telephony in India
\nthrough his joint venture with Hutchison and made 561 cr by selling his stake to
\nenter Life Insurance and created very strong brand image of Max New York life
\ninsurance among the big names in insurance sector backed by giant business
\nhouses like ICICI and HDFC and Reliance. Max New York life insurance is one of
\nthe most ethical having lowest agent turnover and highest agent productivity. Then
\nhe selected healthcare as the next focus area and started Max Healthcare which
\nestablished itself quite fast. He singlehandedly created an empire of Rs. 15000
\ncr. But this eye for opportunity is not the real worthiness of Analjit singh.<\/div>\n
\n<\/div>\n
\nA) Analjit singh means
\ntrust, ethics and wisdom<\/span><\/b><\/div>\n
\n
<\/span><\/b><\/div>\n
\n <\/span>He is one of the few in Indian business who
\nhas maintained and followed very high corporate governance and ethical
\nstandards. World renowned management Guru Ram Charan is his close friend. With
\nhis guidance, Analjit <\/span>singh transferred
\nall his holding in Max group into Trusts. He wants Max to be a professionally
\nmanaged company not promoter governed. He has kept management separate from
\nownership. His children had to work from scratch in Max to earn their place. He
\nis so much obsessed with ethical management that if 4 out of 5 trustees vote
\nagainst him then even he can\u2019t move ahead with his action.<\/div>\n
\n<\/div>\n
\nMax has one of India\u2019s strongest
\nBoard and best independent directors. The Board has immense powers and no
\ninvestor dares to challenge or force them to be yes men. I have never seen such
\na strong and high caliber board in any group as each board member is an
\ninstitution in itself with highest regard for ethics and transparency. Some
\npeople find it hard to understand Analjit Singh\u2019s obsession with governance and
\nethical standards and his decision to stay away from day-to-day management. But
\nhe has seen and bore the brunt of mismanagement in his family. Analjit singh is
\nthe son of Late Bhai Mohan singh the founder of Ranbaxy. In the family
\nsettlement of assets-His elder brother Parvinder singh who was close to Bhai Mohan singh got the <\/span>prized
\npossession of Ranbaxy, Real estate went to brother Bhai Manjeet singh and Analjit
\nsingh got a small troubled textile factory at Okhla.<\/div>\n
\n<\/div>\n
\n<\/a><\/div>\n
\n<\/div>\n
\nAnaljit singh with Ram Charan<\/div>\n
\n(Source: Forbes India)<\/div>\n
\n<\/div>\n
\n<\/div>\n
\n<\/div>\n
\n<\/div>\n
\n<\/div>\n
\n<\/div>\n
\n<\/div>\n
\n<\/div>\n
\n<\/div>\n
\n<\/div>\n
\n<\/div>\n
\n<\/div>\n
\n<\/div>\n
\n<\/div>\n
\n<\/div>\n
\n<\/div>\n
\nRam charan regards Analjit singh
\nas one of his best students with great eye for details. Ram charan is a world
\nrenowned Management Guru, best-selling author. He advises to who\u2019s who of
\nglobal giants like GE, BOA, Dupont, Tata. He works alone and shaped a number of
\nglobal CEO\u2019s like current CEO of GE. GE is working with him for last 45 years.
\nThey say that nobody knows Corporate America better than Ram Charan. Ram Charan
\nis the common link between the promoter, board and the senior management of Max
\nIndia. He attends board meeting of Max once a year and give his guidance. Ram
\ncharan guides three children of Analjit singh in their individual businesses.
\nAnaljit singh regards Ram Charan central to strategy, people and ethics at Max
\ngroup. Presence of person like Ram Charan is the best indication of Corp
\ngovernance standards of the group.<\/p>\n

Also, now is the time when cases of fraud, mismanagement, money leakage are coming out daily and it is shocking to see big names in the list. So here, a group like max with very strong ethical management and board has immense value. A company never commits a fraud…it is always the human factor that’s why human is the most important factor in judging and evaluating a company.<\/span><\/div>\n

\n<\/div>\n
\nI am a great fan of this man Analjit
\nsingh and learned quite a bit by following him. However, there are some people
\nwho think that he is a mercenary as he starts a business with great devotion
\nbut then when he gets a fair value he sells the same without any emotion
\nwhether it was Hutch, Life insurance (tried to merge with HDFC), Healthcare,
\nhealth insurance. But I think all these transactions were prudent business
\ndecisions taken with a focus on protecting and growing shareholders. And
\ndecision to quit these businesses was primarily motivated by a new much better
\nbusiness opportunity in his eyes. His prime motive is earning profit and
\nmaintaining business viability not to create and maintain a legacy business. So
\nwhenever he sees that dynamics of their line of business are changing due to
\nrising competition and requirement of high capital he understands that now is
\nthe time to change track. On the contrary, it is very challenging, difficult and discomforting to start a new business with great dedication again and again and i think this alone proves the risk taking ability and mettle of Analjit singh to succeed in tough environment.<\/span><\/div>\n
\n<\/div>\n
\nBut this change of track is never
\nabrupt\u2026new track is always laid beforehand. It is not that they start laying a fresh track only after
\ntaking the decision to change the track. Like when his life insurance business
\nwas generating profits he started healthcare business. But apart from business
\nangle, I think there may be another reason that we see Analjit singh selling
\nthese businesses time and again-he does not feel belonged or related to these
\nbusinesses. His inner being wants to demonstrate creativity, innovation on some
\nother canvas.<\/div>\n
\n<\/div>\n
\nThen, few years back, one day I
\nread something about his new investment. He went to Africa to watch football
\nworld cup in 2010 and he just fell in love with the place-the Franschhoek
\nwinelands of Cape Town, the world-renowned wine-producing town. <\/span>He felt a sense of connection with that place
\nand then started his string of investments in the real estate of Africa.<\/div>\n
\n<\/div>\n
\nAnd I knew at once that Analjit
\nsingh has found his path to salvation-Real estate. And I am buying Max venture
\nsince then along with Max India. Earlier I earned 7 time return in erstwhile
\nMax India (Before Demerger).<\/div>\n
\n<\/div>\n
\nB) Real
\nestate-Next big thing for Analjit singh<\/span><\/u><\/b><\/div>\n
\n
<\/span><\/u><\/b><\/div>\n
\nI think the moment he understood
\nthat he yearns for this business\u2026that he wanted to use his creativity in this
\nbusiness he must have made his mind to exit his complex set of businesses of
\nhealthcare and insurance. People say that he wanted to quit as both especially
\nhealthcare needs high capital investment amid tight regulatory framework but I
\nthink he does not love the healthcare just like our Dr. Devi shetty who feels
\nhealthcare like his breath\u2026like our PRS Oberoi who loves creating masterpieces
\nthrough his hotels. Analjit singh was a close confidant of PRS Oberoi and was
\nabout to acquire a significant stake in EIH hotels to thwart the hostile
\ntakeover threat of ITC which holds a 15% stake in EIH hotels but his investment
\nin EIH was strongly objected by Vikram oberoi and Arjun oberoi, <\/span>son and nephew of PRS oberoi. <\/div>\n
\n<\/div>\n
\nLater on Reliance picked 15%
\nstake in EIH (along with buying Analjit singh\u2019s stake\u2026some 5%). Although ITC
\nalways maintained that it\u2019ll never go for hostile take-over of EIH\u2026quite
\ncontrary of what L&T has just done to Mindtree. I think the recent hostile
\ntakeover of MIndtree by L&T is a black day for Indian corporate world. Mindtree
\nwas a stunning company and one of the most ethical, employee and shareholder
\nfriendly. Its promoters are one of the most passionate and visionary. On the
\ncontrary L&T is anything but ethical with accusations of forgery (by world
\nbank), bribing and money laundering. When I was searching one name in Indian IT
\nwhich can do big in Artificial Intelligence then Mindtree was the name I
\nfinalized and was planning for investing in it but takeover by L&T was a
\nbig blow for my plans also and I have dropped any plans of investing in it as
\nof now.<\/div>\n
\n<\/div>\n
\nComing back to Analjit singh\u2019s
\nlove for Africa-ever since he has felt the connection with the picturesque
\nvillage of south Africa, he has invested some 300-400 cr in his personal
\ncapacity in south African real estate. Singh purchased 68 hectares of farmland
\nwith vineyards, olive trees, plum trees and pomegranate fields in Franschhoek
\nvalley in South Africa. Singh has 17 land holdings and substantial hectarage
\nunder wine cultivation.<\/div>\n
\n<\/div>\n
\nHe set up Leeu Collection, an
\ninternational collection of four boutique hotels, restaurants, a spa, a
\nmicrobrewery, and home to Mullineux & Leeu Family Wines. <\/div>\n
\n<\/div>\n
\nSingh told Forbes Africa \u201cBusiness
\nis one part of my life but the person is more permanent and more holistic in a
\nmanner of speaking. So when I think of myself as a person and my likes and
\ndislikes, and I don\u2019t have many dislikes, what I like most are all the things
\nthis life embodies. This place gives me greenery, nature, mountains, fog, and
\nscience and technology, as wine-making is all about technology [with regard to]
\nthe maturation process, and the way the fruit is extracted. These are the
\nthings I like. I don\u2019t like sitting in front of a computer screen trying to
\ntrade off the New York Stock Exchange. It\u2019s not my cup of tea. I have therefore
\nreally begun to think of this lifestyle, even though my days are busy when I
\ncome here. But whilst you may call it work, for me, it\u2019s the most pleasurable
\nthing to do\u2026 I am in the moment when I am here. It\u2019s the most restful state for
\nthe mind. I feed off natural energy.\u201d<\/div>\n
\n<\/div>\n
\nLocal village people treat him
\nlike one of them now and he is a very famous person especially because people
\nsee in him the prospectus of job growth. In Franschhoek valley, he has one
\nspecial figure as his neighbour- Sir Richard Branson founder of Virgin group is
\ninvesting big in the valley due to superior wine making capability of the
\nvalley. The great mountains, pure and clean air and vast tourism potential has
\nmade the valley one of the biggest investment destination. Not a surprise that
\nAnaljit singh has seen the opportunity much earlier. These days he spends three
\nmonths every year in his African properties.<\/div>\n
\n<\/div>\n
\nHe has also bought properties in
\nItaly and London (Linthwaite House, a boutique luxury hotel at Windermere) and
\nhas around 68 key properties around the world including India. Recently, he has
\nacquired a bungalow owned by his nephews Malvinder and Shivinder Singh for Rs
\n185 crore in Lutyens\u2019 Delhi which is the most expensive real estate zone in
\nDelhi. In acquiring all this, he has invested significant money of its own
\napart from incurring debt of some Rs. 2000 cr. Recently he is in talks with KKR
\nto raise 2000 cr for reducing debt. The deal with KKR is going to have equity
\nportion also.<\/div>\n
\n<\/div>\n
\nEarlier in 2014, Analjit singh
\ntried to buy a stake in Nashik based Nashik Vintners, the makers of Sula wines
\nonly to be pipped by Anil Ambani. I do not know the status of investment of
\nAnil ambani.<\/div>\n
\nAs per latest estimates the
\nproperty prices in the Franschhoek valley has increased by some 150% in last 5
\nyears and so are the prices of properties of Analjit singh.<\/div>\n
\n<\/div>\n
\nSo I see
\nthat this is going to be one of his biggest and passionate venture and
\nsomething which has the capability to engage him permanently. And this is where
\nAnaljit singh is seeking his salvation after wandering and covering the
\ndistance.<\/span><\/div>\n
\n
<\/span><\/div>\n
\nBut as it has happened all the
\ntime, I think market has failed itself in understanding and valuing Analjit
\nsingh. However in difficult times, one would always prefer man of wisdom like
\nAnaljit singh. I do not know what is going in the mind of Mr. Market as I am
\ntrying to guess the next step of Analjit singh and in the process regularly
\nbuying the stocks of Max India and Max Ventures.<\/div>\n
\n<\/div>\n
\nHealthcare business of Max India
\nis another factor apart from real estate business which has great growth
\nprospectus and something which is my favorite as I see healthcare to achieve
\nthe status of IT industry for india in few years\u2019 time.<\/div>\n
\n<\/div>\n
\nC) Why Real Estate
\nfor Analjit singh<\/span><\/b><\/div>\n
\n
<\/span><\/b><\/div>\n
\nReal estate is not just like any
\nother business\u2026it has some unique features which require specific approach to
\nunderstand the dynamics of real estate.<\/div>\n
\n<\/div>\n
\n1. Quite opposite to what
\nmost people think real estate is very regional<\/u><\/b>. There is nothing like
\npan India market for real estate. Every market is unique with its own set of
\nsupply demand dynamics. It is just like when people say that the world
\ntemperature is rising at the earth when the matter of the fact is there is no
\nsuch thing as world temperature. Every place on this earth has different
\ntemperature which goes on changing everyday all the time. So what they do is to
\ncalculate the average of all these worldwide temperature to conclude that
\ntemperature is rising. But I have serious doubts whether we can take this
\naverage as a representative of global temperature to conclude and prove things.<\/div>\n
\n<\/div>\n
\nSimilarly there is no such thing
\nas Indian real estate. If I want\/need to buy a property in Chandigarh but then
\nI won\u2019t be buying a property in Surat if same is available cheaper. If I need
\nto buy in Chandigarh then I\u2019ll go for chandigarh only. And due to this demand
\nsupply dynamics of Chandigarh are more important because every place has
\nspecific factors which affect the elasticity of supply of real estate.<\/div>\n
\n<\/div>\n
\nLike, I am always of the view
\nthat Mumbai market may not follow the trend of fall in the prices of real
\nestate in NCR, Bangalore etc. One of the main reason for this is Mumbai has
\nrelatively inelastic market as far as supply is concerned and the reason
\nis-Mumbai is land locked from 3 sides by sea so we can expand the city only by
\nthat much. But there is no such limitation for the city like Bangalore which
\ncan expand in all the directions. Also Mumbai municipality is on the verge of
\nraising the Floor space index (FSI) in the city which will further increase the
\nsupply of space for more real estate development from sane piece of land. Due
\nto this, I have been investing in Oberoi Realty for last 3-4 years from 200
\nlevels but invested quite a bit last year when it fell to 350 levels. Apart
\nfrom these Mumbai factors, Oberoi realty is one of the most ethical and premium
\nbuilder in Mumbai with one of the strongest balance sheet. In my real estate
\nstock portfolio, Oberoi Realty is the biggest investment followed by Mahindra
\nLife space.<\/div>\n
\n<\/div>\n
\nMost of the manufacturing and
\nbusiness activity of the country is restricted to some 10-15 large cities like
\nDelhi, Mumbai, Bangalore, Hyderabad, Chennai or pune. That\u2019s why regional
\nfactors become more and more important. Normal Tier 2 or Tier 3 cities do not
\nhave any real demand for real estate.<\/div>\n
\n<\/div>\n
\n2. Then there is commercial
\nreal estate<\/u><\/b> which has its own set of impact factors which are quite
\ndifferent from residential real estate. Demand for commercial real estate is
\nmore stable than residential. As more and more global companies and
\nmanufacturing is entering in India the need for Tier 1 office space is growing
\nfast. And I have a feeling that as compared to residential, commercial real
\nestate is fairly priced and less chance of a bubble. The reason is- rental yield.
\nRental yield on residential real estate is just 2%-3% in India while the same
\nfor commercial real estate is in the range of 8%-12% which looks authentic.
\nThis much higher yield is the proof that demand for commercial real estate is
\nreal and based on the natural economics of demand and supply rather than
\nspeculative demand for residential real estate where the customers are not much
\naware of the steep prices. People invest in residential property out of
\nbaseless speculative instincts and then they keep it forever in the hope of
\ngetting 100%-200% gain and due to higher prices and low demand the rentals are
\nlow in the vicinity of 2%.<\/div>\n
\n<\/div>\n
\nDue to this higher and much real
\nyield, foreign investors are investing big time in Indian commercial real
\nestate. The likes of GIC, Blackstone Group, Canada Pension Plan Investment
\nBoard and Brookfield Asset Management etc. have invested big in Indian
\ncommercial real estate. GDP growth is still good in India and this will create
\nthe demand for more commercial real estate. Another factor which I think behind
\nthe higher demand for commercial space is due to much higher investments in
\nresidential segment in the last decade or so and this has sort of created a
\nsupply constraint in the commercial space and all of a sudden people have
\nrealized the much higher yield of commercial assets.<\/div>\n
\n<\/div>\n
\nIn 2018 around 50 million sq. ft.
\nof commercial space was leased out which is the highest in last 8 years with
\nmajor contributions from NCR and Bangalore. Few days back some of my friends
\nopined in favor of a friend who bought a flat at expensive price (in my view,
\nsome 70-80 lacs for 1100-1200 Sq feet) and they submitted that this is better
\nthan stock market investment. But I told them that the rental value of the flat
\nis Rs.15000 pm (1.8 lac a year) which is around 2% yield and this is the yield
\n(dividend) I am currently getting from my investments in stocks and this is
\ngoing to grow much faster as most of the recent investments made at very low
\nprices in high dividend stocks are yet to accrue dividends. On the contrary, he
\nbought the flat at the peak prices and chance of further growth in residential
\nflat prices is very remote. So by paying Rs. 30 lac upfront and taking a loan
\nof Rs. 40-50 lac for next 20-25 years my friend is just saving 2% rental yield
\nwhich he could have earned by keeping his 30 lac in bank.<\/div>\n
\n<\/div>\n
\nIn my view most of the just
\nconcluded bull run in residential property market was created by investors
\n(black money) buying real estate for further selling (or renting?) not by end
\nusers. I do not think that normal end users in India have so much money to buy
\nsuch expensive but ordinary houses. Low rental yield of 2% dwarfed by bank
\ninterest of 8-9% on loans discourages investment in residential property for
\nearning rent. So focus was always on capital appreciation which did happen but
\nmoney circulated in a narrow loop and no real demand was created.<\/div>\n
\n<\/div>\n
\nNow as our economy needs new
\nsectors to push the GDP growth, I think time has come to have a revisit of real
\nestate sector and in order to promote authentic and real investment we need low
\ninterest rates and most importantly government should reduce the tax rates on
\nlong term and short term capital gain. Also, there is urgent need to cut stamp
\nduty and registration charges as these are very high (6%-10%). Stamp duty
\ncharges in china are .05%, in Brazil and USA around 2%. Cutting stamp duty will
\nnot lower the revenue of the state as people will declare real deal price (now
\n50% of deal price) and there will be volume growth and curbing of black money.<\/div>\n
\n<\/div>\n
\nGrowth in commercial real estate
\nalso results in creating demand for residential properties as employees move to
\nnew business places and require homes.<\/p>\n

Apart from Max, in commercial real estate i have so far invested in Mahindra Lifespace and Prozone Intu which have high share of lease rentals in their overall revenue. Mahindra Lifespace was the first one to introduce integrated cities in India and created gigantic integrated cities in Chennai world city and Jaipur world city spanning 1500 acre and 2900 acre respectively. Prozone earns some 100 cr a year as lease rent but its market cap is just 300 cr with fully paid land bank of around 2000 cr with almost nil debt. Oberoi Realty’s commercial real estate business is smaller as compared to residential portfolio but he has invested big for this business and from its present commercial portfolio of some 1.6 million sq feet it is going to touch 4.2 msf in the near future.<\/span><\/div>\n

\n<\/div>\n
\n3. Supporting
\nInfrastructure:<\/u><\/b> Recently, there is high growth in much needed
\nsupporting infrastructure in metro cities like Metro rail, Airports etc. This
\nhas resulted in growth in demand for commercial properties. Metro rail network
\nhas created the biggest impact and corporates are moving to these cities. Here,
\nNCR region has the most robust and vast metro rail network which is way bigger
\nthan any other cities. It is the twelfth largest metro network in the world and
\nit goes beyond connecting intra city and connects nearby cities like Noida,
\nGurugram, Faridabad and Ghaziabad. Most importantly, Max ventures has developed
\nand is developing its commercial properties in NCR market.<\/div>\n
\n<\/div>\n
\n4. RERA Impact and debt
\nproblems of the sector:<\/u><\/b> strong regulation of RERA and tight liquidity
\nposition of the most of the small developers is forcing them to re-consider
\ntheir approach and they are making deals with large corporates for completion
\nand sale of the project. This is going to create great opportunities for strong
\ncorporate developers like Oberoi Realty, Godrej and Mahindra. Max group is also
\ngoing to jump in as they have all the resources and strong brand image. In fact,
\ntheir first completed commercial project Max Tower in Delhi 1 has been acquired
\nfrom original developer 3C which ran into financial troubles.<\/div>\n
\n<\/div>\n
\nNCR market has huge unsold
\ninventory and Analjit singh himself has invested quite a bit in NCR market so I
\nam sure with having the pulse of this market they are definitely going to pick
\nsuch deals. Residential developers have some 4 lac cr debt as on date and they
\nare required to pay around 1.2 lac cr every year including interest payments to
\nthe lenders. However their EBIDTA is around 60000 cr so they are in no case in
\na situation to pay back the money to lender with current situation. So I am
\nsure we are going to see big stressed sale in the near future.<\/div>\n
\n<\/div>\n
\nIn fact, Max estates (Subsidiary
\nof Max Ventures) is already in discussions to acquire land parcels in NCR for
\noffice projects in partnership with Apollo management Singapore ltd.<\/div>\n
\n<\/div>\n
\nD) So where does Max
\ngroups stand now<\/span><\/b><\/div>\n
\n
<\/span><\/b><\/div>\n
\n1) Max ventures<\/span>:<\/u><\/b> Let me
\nfirst come to Max ventures as it has just completed one of the marquee
\ncommercial project in NCR market.<\/div>\n
\n<\/div>\n
\na)Earlier it was mainly a
\npackaging product player with investments in hospitality and E-commerce
\nstartups. Then as they planned for real estate foray and expansion of packaging
\nbusiness, they raised the capital for the same by stake sale of packaging
\nbusiness, right issue and investment by New York life.<\/div>\n
\n<\/div>\n
\nSo in all they collected Rs. 770
\ncr-200 cr from stake sale of 49% in packaging business to Japanese major
\nToppan, 450 cr through right issue (at Rs. 61 per share) and also earlier partner
\nof Max in life insurance business New york Life picked 22.5% stake in max
\nventure for Rs 121 cr (Rs 78 per share). Right issue was primarily for real
\nestate business. After the right issue, promoter holding in the company has
\ngone to 47% from 38%.<\/div>\n
\n<\/div>\n
\nb) The
\nrepeated investments by the marquee global business houses and investors in Max
\nare a testimony for the faith in managerial capability of the max group by
\nthese global giants.<\/span> New york life acquired 26% stake in Max Life in
\n2001 which it sold to Mutsui Sumitomo in 2012. Earlier, KKR picked 10% stake in
\nthe life insurance business and now KKR is putting big money in acquiring
\nmajority stake in Max Healthcare. KKR has also supported the personal real
\nestate business of Analjit singh by providing some 2000 cr credit line.<\/div>\n
\n<\/div>\n
\nc) Apart from the above, they
\nhave also made partial exits from their investment made in e-commerce venture
\nNykaa. Max ventures invested 17.5 cr in 2016 for 2% stake. It sold 1% stake
\n(around 17 cr) at 100% profit in FY-2018 and sold .5% in June-19 quarter for 25
\ncr. Max ventures holds 18.87% stake in Azure hospitality with investments of
\nRs. 70.5 cr. Azure is the owner of some of the fastest growing restaurant
\nbrands in india like Mamagoto and Rollmaal. Azure is backed by Goldman sachs which
\nholds around 35% stake in it. Azure is debt free and profitable with topline of
\nsome 180 cr with 45 restaurants and 2300 employees. So this is not some generic
\nrestaurant business selling run of the mill chinese food, butter chicken and
\nDal makhani which opens and closes daily. Max has selected one of the best and
\nsuccessful names in Indian food space.<\/div>\n
\n<\/div>\n
\nMax has earned 42 cr from 11-12
\ncr invested in Nykaa so far. For Azure, I do not have any valuation figure
\nright now but the minimum valuation of Max\u2019s stake should be around 100 cr. So
\nwe\u2019ll see Max exiting these investments in due course of time in order to grow
\nreal estate business.<\/div>\n
\n<\/div>\n
\nd) So far Max ventures has
\ncompleted its first commercial development project Max tower in record 24
\nmonths in Delhi 1 which is located on the DND flyway between Delhi and Noida.
\nAfter its original developer 3C ran into financial troubles, it was being
\nexecuted by the private real estate arm of Analjit singh Piveta Estates Pvt.
\nLtd. But later on the same was transferred to Wise Zone Builders Pvt Ltd (Subsidiary
\nof Max estates which is a subsidiary of Max Ventures for Real estate business).
\nIt is probably the only stressed real estate asset in North India to have
\nwitnessed such a speedy revival and completion.<\/div>\n
\n<\/div>\n
\nMax tower is 22 story building
\nwith top 3 floors are for amenities like Auditorium, food courts, green areas, an
\nair purifying system, Gym, swimming pool and spa etc. It is the only office
\nbuilding in Delhi NCR to have these facilities. No doubt, with this Max has
\nchanged the concept of office life from nothing else than boring all day
\ntireless sitting to involving and refreshing work well philosophy. It has total
\nleasable area of 5 lac sq feet.<\/div>\n
\n<\/div>\n
\ne) Max tower is an \u201cA\u201d grade LEED
\ncertified commercial property built at a total cost of 600 cr out of which Rs.
\n150 cr is debt and 450 cr is own contribution. There is shortage of \u201cA\u201d grade
\noffice space in NCR and due to amenities being offered, Max tower is getting
\nmonthly lease rental of Rs 100 sq feet which are 40% higher than the
\nneighborhood rents. So the rental yield is coming around 12% which speaks
\nvolume about the capability and eye for business opportunity of the management.
\nMost players and foreign investors are happy at 8% yield so in this background
\nthis indeed is a commanding performance and I am expecting Max group with their
\nfantastic eye for details and trends to establish strong brand image in Indian
\nreal estate market.<\/div>\n
\n<\/div>\n
\nGlobal co-working giant IWG has
\ntaken on lease 50000 sq feet for its space brand. 20% of the leasable area has
\nbeen taken on lease by Max group firms. French Bakery player L\u2019Opera,
\nwell-known for bringing authentic French bakery products to India has opened
\nits biggest outlet in Max Tower which was inaugurated by French Ambassador to
\nIndia in June-2019.<\/div>\n
\n<\/div>\n
\nActually, they are not a novice
\nin this sector as building of large hospitals require tireless planning for
\nmost efficient use of the premium space and providing and meeting the
\nexpectations of patients. So they already have the ground work for this business.<\/div>\n
\n<\/div>\n
\nf) As shared earlier, due to
\nfinancial troubles faced by developers strong hands like Max has the
\nopportunity to grab land parcels, projects cheaply and for Delhi 1 projects
\nmost of the projects are facing insolvency proceedings and Max has already
\nsubmitted bids for these projects.<\/div>\n
\n<\/div>\n
\ng) Apart from Max Towers they are
\nalso developing a commercial project \u201cMax House\u201d in Okhla Delhi with leasable
\narea of 1 lac sq feet in the first phase. Earlier they were having 50% interest
\nin this project and the balance belongs to Max India ltd as Max India is the
\nholding 85.17% stake in Pharmax corporation in which phase 1 of the Okhla
\nproject was housed. But in June-19 Pharmax corporation has sold its 85.17%
\nstake to Max estates for 87 cr including preference share capital. With this I
\nthink now as Max Estate is holding 85.17% in the Pharmax corporation so their
\ninterest is also 85.17% of Phase 1 and further expansions. Pharmax is already
\nearning lease rent income from the building.<\/div>\n
\n<\/div>\n
\nA residential project at Rajpur Dehradun
\ncomprising 22 super luxury villas with a price tag of Rs 4-5 cr each has been
\ncompleted and so far they have sold 11 units for 44 cr.<\/div>\n
\n<\/div>\n
\nh) For their manufacturing
\nbusiness, they have almost doubled the capacity with recent expansion of around
\n250 cr. Last year was the difficult period for indian packaging firms due to
\nover supply but this is normalized now and June-19 results were great for
\npackaging business and I expect this business to result in good profits and
\ncash flows.<\/div>\n
\n<\/div>\n
\ni) I think of a situation in the
\nfuture where Max needs cash to buy stressed real estate assets cheaply <\/span>then they may sell their 51% stake in
\npackaging business. Although before that they would sell their investments in
\nAzure. Also from now on they will get steady lease income from Max Tower which
\nthey can use for expansions. <\/div>\n
\n<\/div>\n
\nj) So no doubt, Max ventures is
\ngoing to create serious wealth in future and things have set up nicely for
\nthat. But its share price was falling along with market and after Mar-19
\nresults I have started my second phase of investment in this one from Jun-19
\nonward. I started 2nd<\/sup> round from 42 and goes on picking this one all
\nthe way to 38 just before jun-19 results. I was having strong feeling that its
\njune results would be great which they were and after stellar June-19 results it has already shot up from 35 to 45. My earlier avg was around 62 but
\npicked up good quantity in the current fall and the average now is 46. <\/span><\/div>\n
\n
<\/span><\/div>\n
\nk) Let\u2019s try to find out its
\nminimum value. Last time they sold 49% stake in packaging unit for 200 cr so
\nafter the recent expansion (with debt) and growth in business they should get
\nminimum 250 cr<\/b> for their 51% stake at present. They have invested 450
\ncr <\/b>in Max Tower project. They were having 120 cr in Mar-19 balance sheet
\nout of which they have agreed to pay 87 cr for Pharmax acquisition but let\u2019s
\ntake this 120 cr<\/b>. Take the value of their Nykaa and Azure investments at
\n125 cr<\/b>. The sale price of balance 11 flats in Rajpur at 4 cr per flat is
\n44 cr. So all this make the minimum valuation at 989 cr or 1000 cr when its
\ncurrent market capitalization is just 650 cr. Please keep in mind that we have
\nonly taken the minimum value of its various verticals. So this makes current
\nmarket price of 45 a good entry point.<\/b><\/span><\/div>\n
\n<\/div>\n
\nl) They have also setup Max Asset
\nServices to take care of the servicing needs of their commercial assets. But it
\nis not like our traditional facilities management entity to take care of tap
\nand toilet. Its focus is on creating community in the building and creating
\nevents, sports and all that which will lead to a better customer experience.
\nThis is a novel idea which may create niche business opportunity in the future.<\/div>\n
\n<\/div>\n
\n2)<\/span><\/b> Max India:<\/u><\/b><\/span>
\n<\/span>Market has literally thrown this one into garbage bin. Max India houses
\nthe heathcare (Max Healthcare), Heath insurance (Max Bupa) and senior living
\nbusiness (Antara senior living). Recently they have sold out their 51% stake in
\nhealth insurance business for 515 cr and then sold out their stake in Pharmax
\ncorporation to max estates for 87 cr. So these two deals mean that they have
\n600 cr cash in the books.<\/div>\n
\n<\/div>\n
\na) In
\nAntara senior living<\/span><\/b> they have created one of the most premium
\nsenior living project with excellency in design and facilities named \u2018Antara
\nPurukul\u2019 which is spread over 14 acres of lush greenery in Dehradun.. Senior
\nliving as a concept is growing fast in India and it is coming out of the
\nnegativity attached due to old age home thinking but this one is a premium
\nhospitality project where old age residents live in best in class luxury homes which
\nare designed around the safety, wellness and lifestyle requirements of seniors.<\/div>\n
\n<\/div>\n
\nSenior living communities is
\npopular in USA from 1980\u2019s and we are trying to catch up now with the
\npotential. Senior living is a $ 300 billion industry in USA. Other developers
\nhave opted to outsource the management of the community but Antara has decided
\nto manage the entire community with an in-house staff trained by the company.
\nAnd their top notch community service is winning accolades from around the
\nworld. I have seen disputes emerging in other senior living communities over
\nfrequent increase in dining charges etc. but residents of Antara are living and
\nenjoying a great life. Residents are provided with dining facilities, daily
\nhousekeeping, laundry services, concierge services, Yoga, healthcare, Bar,
\nsports activities and life time maintenance of everything in the house be it
\nthe flooring, plumbing, lighting or electrical appliances.<\/p>\n

<\/p>\n\n\n\n\n
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\n<\/a><\/div>\n
\n<\/a><\/div>\n

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\n<\/a><\/div>\n

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Images source: Antara senior living<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

<\/div>\n

\n<\/div>\n
\n

But Antara is not our normal real
\nestate project. Antara has been carefully crafted by internationally renowned
\narchitects Perkins Eastman from New York and Esteva & Esteva from Spain,
\nwith design execution support from Arcop Architecture Inc. and Studio Lotus.
\nWith construction partners such as Shapoorjii Pallonji, Suri & Suri
\nConstructions (civil works), Vadhera Builders (finishing works), Sterling
\nWilson (plumbing and firefighting) and Jakson (electrical). While designing the
\nhomes, focus was on the fact that these are to be used by senior citizens where
\npremium-ness should be supported by safety.<\/p><\/div>\n

\n<\/div>\n
\nAntara was having the inventory
\nof 192 apartments with price ranging from 2 cr to 6 cr. So far they have sold
\n111 apartments and 73 residents have moved in. They have collected around
\nRs.300 cr so far.<\/div>\n
\nAntara is the brain child of Tara
\nSingh Vachani, the youngest of Analjit Singh\u2019s three children. Her husband,
\nsahil Vachani, is having the charge of max ventures. <\/span>In order to understand the senior living model
\nand finer details she has visited numerous senior living projects across
\ncountries and she has come out with a project which is at par with world\u2019s best
\nso far.<\/div>\n
\n<\/div>\n
\nNow, Antara is focusing on
\ngrowing its business via asset light, low risk business model where it will
\npartner with developers for operating or joint development model. It is looking
\nto leverage its strong brand name and execution skills. Antara\u2019s responsibility
\nwill be to provide design, quality assurance, sales and marketing support, and
\nprogram management during the project and sales phase and independently run the
\ncommunity operations after handing over the apartments to the residents. It has
\nso far identified two such opportunities in Chandigarh and Noida. For
\nChandigarh project comprising 650 units with price range of 75 lac to 1.5 cr, developer
\nwill arrange land and debt whereas Antara will invest some 20cr and will get
\n17%of collections as fee. For Noida project comprising 550 units with price
\nrange of 75 lac to 1.5 cr, it will put 51 cr apart from guarantees for debt of
\n130 cr whereas developer will arrange land. Here it will get 10% of collections
\nas fee and 62.5% of net realization.<\/div>\n
\n<\/div>\n
\nSo I think, this fee based
\nco-development model will provide vast business opportunities and as the
\ncontribution of Antara will mostly be designing and marketing at development
\nstage so the same will ensure execution of more projects at a given point of
\ntime resulting in more revenues for given amount of capital. Max India has invested around 283 cr in Antara so let\u2019s take
\nthis as minimum valuation of Antara.<\/span><\/div>\n
\n
<\/span><\/div>\n
\nb) Max Healthcare: <\/span>Max
\nIndia has 49.7% stake in Max healthcare. South Africa based Life healthcare is
\nalso having 49.7% stake and they are selling the same to Radiant life care for
\nRs. 2136 cr (Rs. 80 per share) thus valuing the Max Healthcare at 4298 cr.
\nRadiant is owned by Abhay Soi and backed by KKR. After that Radiant\u2019s
\nhealthcare assets will be demerged into Max Healthcare which will result in KKR
\nand Radiant promoter Abhay Soi together acquiring a majority stake in Max
\nHealthcare and Max Healthcare will be listed separately. Max India shareholders
\nholding 100 shares will get 99 shares of demerged Max healthcare and this means
\nthat current 1 share of Max india will get 1 share of Max healthcare valued at Rs. 80 at a valuation of 2136 cr. Combined valuation of Max Healthcare and Radiant life care will be around 7300 cr.<\/span><\/div>\n
\n
<\/span><\/div>\n
\nMax healthcare has revenues of
\nsome 2800 cr. Last 2 years were very difficult for the healthcare industry in
\nIndia due to regulatory overhang where it was perceived that Hospitals are
\nlooting people with exorbitant pricing. However this is not true as hospitals
\nare very capital intensive business and require large capital due to high real
\nestate cost of setting up hospitals in prime locations and high cost of
\nimported machinery. Contrary to the general public opinion, Hospitals have low
\nreturn on equity of some 8%. So industry suffered in last two years due to
\ncontrol over pricing. Hospitals do not mention the charge for machinery,
\nbuilding etc. in their bills so it appears that they are charging way too much
\nfor drugs and consumables. But then they corrected their billing composition
\nand to counter the price control over drugs they raised the procedure prices.<\/div>\n
\n<\/div>\n
\nNow the industry is back to the
\ngrowth in bottom line and the likes of Apollo and Narayana Healthcare have
\ngiven stellar performances. Max Healthcare has also shown a Net profit of 20 cr
\nin Mar-19 quarter. Healthcare industry is going to witness high growth from
\nhereon. India is leading the world in low cost quality healthcare and this is
\ngoing to be once in a life time opportunity for India to improve its
\ninfrastructure and support to encourage the growth of medical tourism which I
\nthink has the potential to achieve the scale achieved by our IT industry.
\nHealthcare is still a luxury and around 90% global population can\u2019t afford
\nthis. But India is now leading the way in changing the notion that healthcare
\nis costly. The likes of Narayana are providing heart surgeries at the cost of
\nRs. 2-3 lac when the same is costing around 70-80 lacs in USA. Healthcare is
\nthe top priority of Modi Government also so in my view healthcare stocks are
\nstunning high growth but defensive bet for any portfolio.<\/div>\n
\n<\/div>\n
\nI have invested most of my money
\nthis year into healthcare stocks and the likes of Narayana Healthcare, HCG and
\nMax India are my top investments and I feel NH is going to be the stock of this
\nyear.<\/div>\n
\n<\/div>\n
\nAfter the demerger of Max
\nHealthcare (merging Radiant life care), Abhay soi is going to lead the company.
\nIn the resultant MHIL, KKR will be the majority shareholder with 51.9% stake,
\nAbhay Soi will hold 23.2%, Analjit singh will hold 7% and public will hold
\n17.8%. Radiant life care has the management contract for running BLK hospital,
\nDelhi (650 beds) and Nanavati hospitals Mumbai (350 beds). Before Abhay Soi
\ntook the operations of both these hospitals, both were having stagnant topline
\nand losses. But after Abhay Soi, BLK revenues has grown at CAGR of 43% from
\nFY10 – FY18 and 27% in Nanavati from FY15 – FY18. During the period EBIDTA
\ngrowth in BLK is 48% while in Nanavati EBIDTA margins in FY 2018 are 2.7%
\nagainst losses in FY 2015 when Abhay soi took the control.<\/div>\n
\n<\/div>\n
\nThis Abhay soi is a very
\ndangerous man and he is the reason I am very excited about the growth of Max
\nhealthcare in the future. This is also due to the fact that after the merger,
\nthere will be the positive impact of synergy as both these chains have major
\nbusiness from Delhi market and so they will witness savings in costs like HR,
\nIT, Finance function, common and bulk sourcing of drugs, machinery and
\nconsumables. So I think even these changes alone will bring significant positive impact on
\nthe bottom line. And most of the impact will come from the superior management
\nskill of Abhay Soi and financial clout of KKR.<\/div>\n
\n<\/div>\n
\nSo I
\nthink investment in Max India now is a fantastic chance to be a part of high
\ncaliber business lead by the likes of Abhay Soi and KKR and due to market
\nimperfection the same is not available even at par value but at throw away
\nprice.<\/span><\/div>\n
\n
<\/span><\/div>\n
\nBefore starting Radiant life care,
\nthe first firm in India in the hospital management business, Abhay Soi worked
\nas turnaround specialist and was the head of corporate restructuring at KPMG
\nand EY. The learning of turning around businesses has made sure that he had the
\nwisdom and eye for turning around hospital business of BLk and Nanavati even
\nwhen he was not having any experience of healthcare business. He was backed by
\nKKR and Radiant invested its own money (350 cr) in re-developing BLK and making
\nit a force to reckon in Delhi circle. Radiant life is one of the top player in
\nmedical tourism in India especially because Delhi is the main market for the
\nsame and Radiant has BLK in Delhi. Max also has strong presence in Delhi-NCR
\nmarket. Out of the total combined bed capacity of 3200 beds after merger, both
\nwill have some 2400 beds in Delhi-NCR market alone.<\/div>\n
\n<\/div>\n
\nI will cover the detailed
\nanalysis of healthcare sector in india in another post dedicated to it and will
\nbe posting the same within few days. i am leaving it here due to the length of
\nthis post.<\/span><\/div>\n
\n<\/div>\n
\nSo after adding the cash of 600
\ncr and 283 cr investment in Antara and valuation of stake in MHIL at 2136 cr,
\nwe are getting the valuation of Max India at 3000 cr and this will prove that
\nstock markets are weird as current market value of Max India is just 1500 cr.
\nMy average used to be around Rs. 125 for Max India but in last two months I have
\npicked good quantity in the range of 56-65 and now the average is down to 78
\nwhich is a fantastic price to have it. I do not know what market is seeing here which i am not being able to see because the valuation gap looks too good to be true that too of a top notch group like Max. Fantastic buy at CMP of 56.<\/b><\/span><\/b><\/div>\n
\n<\/div>\n
\nApart from the baove, Max India
\nhas another high growth business in max Skill first which is into providing
\nprofessional skilling solutions. It has been acknowledged as the 5th Best Place
\nto Work for, in a survey among 50 companies in the SME Biz category across
\nmajor industry sectors in India, by the ‘Great Place to Work Institute(GPTW).
\nEarlier it was having Max group companies as its client but now it has expanded
\nthe clientele to cover the likes of HDFC, Karur Vysya Bank, Ujjivan and Rattan
\nIndia. In FY 2019, it imparted over 3.9 Lakh hours of training to more than 1
\nLakh learners through 90,000+ sessions to both Max Group and other accounts. <\/span>It has grown its revenues very fast to touch
\n52 cr last year and I think this is going to be one of the future value creater
\nfor Max India.<\/p>\n

Further, Max Financial services Ltd <\/span><\/u><\/b>which holds the life insurance business of group is also trading at very cheap valuations. At CMP of 400 its market value is around 10000 cr which means it is trading at 1.6 times of its Embedded value (EV) which in my view is extremely low for a highly efficient and reputed life insurance player. For a perspective, SBI Life trades at 5 times its EV and HDFC at some 20 times. Last year both SBI Life and Max Fin were trading at 3 times EV so one can see the gross undervaluation. Looks like market is worried about pledged shares (some 80%) but Analjit singh is having high value real estates for backing his debt so he may decide to either sell stake in max Fin or his real estate holdings but there will be no default. So i think Max Fin is also a stunning buy at present and i am buying this one regularly.<\/span><\/div>\n

\n<\/div>\n
\nPath to salvation for
\nAnaljit singh<\/span><\/b><\/div>\n
\n
<\/span><\/b><\/div>\n
\nMax India, Max venture and
\nAnaljit singh have one common link and that\u2019s real estate business. Max India will
\nbe having 600 cr cash in its books which can be utilized for the expansion of
\ngroup real estate business. Analjit singh has some of the marquee real estate
\nand hospitality properties across the world but he has high debt to focus on.
\nMax ventures has settled commercial real estate business and the cash flows
\nfrom the same can be utilized for the further expansion.<\/div>\n
\n<\/div>\n
\nBut if one can see, the real
\nvalue will emerge if we can combine the real estate businesses of these three
\nentities and I think this will be the best solution. KKR is already backing
\nAnaljit singh and there is high chance for a place for KKR also. Analjit singh
\nhas also expressed in so many interviews that they are not afraid of listed
\ncompanies and they like it because they even run their private businesses just
\nlike listed companies. I feel Analjit singh can opt to merge full or some part of his real estate holdings with Max India\/Max venture and for this he may further opt to pay off his real estate debt before the merger.<\/div>\n
\n<\/div>\n
\nAnaljit singh was in development
\nphase of his personal real estate venture and now he has settled most of these
\nand will witness strong growth in revenues like his winery is setting its eye
\non exports market of Europe, America, Uk and Asia. General public opinion is
\nthat Analjit singh has sold healthcare due to tough regulatory environment and
\nhigh capital requirement but I think this can\u2019t be the case with someone who
\nhas crafted and handled those businesses throughout his life time which require
\nlarge capital amid tough regulations. It is just that he had to choose between
\nReal estate and Healthcare and he chose the former because it is where he wants
\nto manifests his creativity and purpose.<\/div>\n
\n<\/div>\n
\nI have seen people living (wasting) whole their life thinking that uniform is the religion and taking
\ncare of this uniform is the karma and the purpose. But the real karma is what
\nputs us on the path to salvation all else is just dusting. And path implies effort,
\ndedication and yearning to cross over\u2026uniform is cheap but salvation is dear.<\/p>\n

When we use financial analysis we are just taking care of the uniform…Analjit singh is the salvation.<\/p><\/div>\n

<\/div>\n
(Update Sep-2020: Max healthcare is listed around 120 in Aug-2020 after demerger from Max India. Max India listed and trading around 60 (12 Rs. for 2 Rs. face value of erstwhile Max India). So total value of both is 120+12=132 which is around 2.5 times of our investment at 56…so it is doing great and still there is a lot of value unlocking is due and both are great long term bets.)<\/span><\/div>\n
\n<\/div>\n
\n(Views are personal and should not be taken as a recommendation for buying or selling a stock. Stock markets are inherently risky so kindly do your Due Diligence before investing. I am not a certified Sebi Analyst and holding the shares discussed in this Post.<\/span> <\/span>Reach me at oscillationss@yahoo.in<\/span>).<\/span><\/div>\n

<\/div>\n","protected":false},"excerpt":{"rendered":"

I see people analyzing a company\u2026they try to extract the gold from financial data, numbers\u2026investing all their efforts on the financial data as if the figures of turnover, profits are generated in auto mode by some business entity. But no such entity exists\u2026behind all these superlative businesses, giant economies is just one factor-Human factor. The figures we try to use to judge the worthiness of a business are nothing but a quantification of human efforts\u2026.and bad news is that even this quantification can\u2019t capture the force behind human efforts-wisdom. It counts the money but leaves the velocity….human spirit, creativity and…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1058","post","type-post","status-publish","format-standard","hentry","category-blog"],"_links":{"self":[{"href":"https:\/\/oscillations.in\/index.php?rest_route=\/wp\/v2\/posts\/1058","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/oscillations.in\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/oscillations.in\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/oscillations.in\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/oscillations.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1058"}],"version-history":[{"count":0,"href":"https:\/\/oscillations.in\/index.php?rest_route=\/wp\/v2\/posts\/1058\/revisions"}],"wp:attachment":[{"href":"https:\/\/oscillations.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1058"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/oscillations.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1058"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/oscillations.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1058"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}