Finally details are appearing on the Greater Kailash fire incident. No loop holes in the fire system of Antara. The fire broke out “accidentally due to negligence” by one of the residents in lighting up a candle or incense stick inside a room. Candles were apparently lit due to New Year’s Eve.
Sad incident, hopefully Antara / Max will learn and adapt.
@InvestorUK They are coming up with 3 new real estate projects. Will be based on Developement Model (DM). Do we know the exact revenue recognition policy which they use for DM?
This is important to understand the real estate side of business. Assisted care is pretty much clear from your previous points.
I apologize if this is a really silly question… Holding companies usually have shares of multiple companies right? From my understanding Max India is the holding company of just Antara? So what is the advantage /Disadvantage of this setup as against just listing Antara?
Its similar to - Reliance industries holding Jio, Reliance Retails etc. Imagine the unlisted subsidiaries grows and get listed then the shareholders on Max india/Reliance will get shares of listed companies in future.
Thanks…But my question was that in this case Max India holds just one compnay i.e Antara right? So what is the advantage of having a holding company with just one subsidiary rather than listing the subsidiary itself?
There is decent progress in terms of margins. From the concall, the mgmt mentioned that they are looking to expand into Bangalore and Chennai and many developers are interested. Need to see how this scales.
Still, the shareholder equity is reducing at about 15% CAGR. From 720Cr in 2020, it is now 540 Cr in 2023.
Also, when I was digging through cashflows, I saw this entry “Payment to shareholders on reduction of Equity Share Capital”. Not sure if they did buyback of shares…
They have already opened one care home in Bangalore. Final due diligence going in for a 800+ apartment residency.
Chennai, Pune – they are still scouting for land for senior living residency project.
My take on this company is:
They will break ground in Gurgaon, Bangalore and Noida phase 2 by end of this financial year or early next year. Followed by 3 more residencies in next two years – Pune Chennai and Chandigarh.
Company can stay loss making till 2028 as company is small and rapid expansion on care/memory homes will mean more loss making units (at least till first year of operation)
2030 onwards it seems to have good future (obviously need to keep track, and mostly things will fall in place unless they do any blunder on capital allocation). Existing care homes can easily take care of the new car home setup.
Beyond 2035 when senior residencies people start ageing all these resident will become implicit customers to the care home, care at home facilities and medical devices that company owns. One must understand that in addition to the normal business all residents will be captive customers of other facilities given by company.
So, not sure if any quick money can be made here. But future seems very bright.
My views are biased. Invested 7% of portfolio and will keep adding until major setback to the industry / company.
I dont think they have any Care home in Bangalore. They are looking for Senior Living in Bangalore, may go in for Care Home in South. Currently, NCR focussed company
There are many competitors but Max India claims that they are the only integrated player present across all segments. They are trying to create an ecosystem for seniors. If they achieve that, they will get lot of business by referrals and also cross selling, this reducing customer acquisition costs.
But I think they have a really long long way to go. They are primarily present NCR, Max Estates (I think group company) is focussed also on NCR. Moving to a different cities like Bangalore, Pune or Chennai will be difficult. But still much lesser Capex than hospital business.
Stock seems to have run up. Theme is good, will add more as performance.
Does anyone know why the depriciation is so low around 232cr on fixed assets of 7k cr (3.3%) ? Apollo has around 7+% depriciation rate on fixed assets.
As per the twitter handle of Antara senior care, It seems like they have started Care at Home & Medcare product services at Bangalore. Not sure if this was the trigger for recent price movement.
D: Invested/Biased.
It can create phenomenal wealth ahead, COVID put them a few years behind in expansion. With new model of asset light partnering with real estate players they can cover manyillion.okus cities in years ahead, possible demergers add bonus , mega trend with most. More imp most picks of Porenju go on to be one phenomenal wealth …key is hiding for long term, I will for years and decade too as long as thesis is intact …good luck everyone
