Max India:

• Turnaround Story : Patience pays
• Promoted by Analjith Singh (Ex-Ranbaxy Group’s kin) company
• Earlier known as Max Newyork Life Insurance Company.
• JV partner Newyork life exited in FY 2012.
• New partner: Mitsui Sumitomo Insurance : Japan : Acquired 26% stake in Apr 2012 for Rs.2731 Cr, Valuing Max Life at Rs.10504 Crores. This is 2^nd largest foreign investment in Indian Life Insurance Sector.
• Max India’s 70% stake in Max Life is worth Rs.7352 Crore.
• But Max India’s market cap is around Rs.6500 Crores @ CMP of Rs.245 Crores.
• Apart from that, the embedded value of Max Life  is Rs.3684 crores.
• Other business like Health Ins, Health care, Clinical research. These valuations are like bonus.
• Max Pupa Health Insurance : JV between Max India and UK Bupa Finance Plc of UK.
• Health Insurance has 3.55 Lakh Customers with 1026 emplyees and 7415 agents and 20 office and 1350 partners hospitals.
• Max Life has AUM of Rs.19184 Crores with over 3.5 million policies in force with Sum assured of Rs.158000 Crore. It has 40000 agents and 400 trainers.
• Restructured its business to focus on Life Insurance
• Sold off Speciality film division to Treofan, Germany in Sept 2012 for Rs.540 Crores.
• Speciality film’s leading product was Biaxially Oriented Polypropylene films. This was the oldest business of Max India with manufacturing capacity of Rs.50000 tonnes per annum of BOPP.
• Debt reduced from 0.49 in FY 2011 to 0.29 in FY 2012.
• Max Neeman Medical internationsl : into clinical research.
• Reporting profit consistently for last 8 quarters.
• 1^st dividend in last 10 years : 500% (Rs.10 dividend against face value of Rs.2).
• Institutional Invesors : Fidelity, DSP Black rock, Natwest, Temasek and Morgan Stanley.
• Max India is a risky stock. Company still needs to pump in funds.
• Increase in FDI from 26% to 49% could be short term trigger.