I think Future Ventures can be a good long term bet. Currently they have invested in 13 ventures in the consumption space and primarily in food, fashion, fmcg and rural distribution. To name a few are Lee Cooper, BIBA, Tasty Treat, Amar Chitra Katha, Aadhar retailing etc.

The company is being promoted by Kishore Biyani of Future group.

Although the company has not made any profits in the last 3 years, it is understandable because most of the companies are in start up phase. In the last one year though some of them have moved into the profit zone and the growth projection given by them is around 20%.

Here are the investments they made

Indus-League Clothing (85% Stake) revenue $40 million in sales, net margin at 2%. Brands are Indian Terrain, Urban Yoga, Urbana, John Miller etc

Celio Future Fashion (43% Stake) Sales growth above 200% in 2010 ($6.5 million) with net margin of 18%.

Lee Cooper (India) (84% Stake). The company has shown an growth of over 40% CAGR though net margin is 6%

AND Designs (23% Equity Stake ) The company also has financials showing growth of more than 50% CAGR in revenues and with around Rs 58 crores in profit with 12% Net Margin.

Biba Apparels (13% Stake ) The company has growth rates of around 25% CAGR and a net margin of around 8%.

Turtle (23% Stake) The company’s growth though has declined in 2010 and net margin remains at around 4%.

Holii Accessories : Revenues of less than $1 million and has operating losses.

Future Group Companies

Food Industry

Capital Foods Exports ( 41% Stake ) Revenues around $3 million

Future Consumer Enterprises

Future Consumer Products

Rural Retail

Aadhaar Retailing: Loss of Rs 19 crore last year which means a Net Margin of -40%

Footwear Retail

SSIPL Retail (6.5% Stake).SSIPL sells footwear from Nike and has more than 100 exclusive stores.Revenues with Rs 334 crore however Net Margin is only 1.5%

Green and SRI Retail

Indus Tree Crafts (52% Stake)

Education

Amar Chitra Katha- In losses

Future Ventures has a significant stake in portfolio firms to have management control and may look to divest portfolio companies through M&A or IPOs to exit its investments.

Currently the stock is around Rs. 9 and I think its a good time to get into this stock and accumulate in little quantities.

Note: I have stock investments in this company.

I've read somewhere that if a company that has Rs.10 face value as its share price and the actual share price is below Rs.10 as in the case of Future Ventures (now Rs. 8.75), its a classic multibagger case (Also consider management, growth, business model,risks). Alchemist, can you comment on this?

With that logic even Magnum Ventures Limited is a bigger multibagger. It trades around 4 with face value of rupees 10.

Even if it doubles from here in short term, it will be a multibagger.

Regarding future ventures I remembered all brands in loss are part of it.

Also the main parent company is facing huge debt issue and its only running because of kishore's name. People think he has the vision to go back to glory. But I don't feel once he goes or the main managment comes into his kids' hands, no one will try to give a deal to the company as been giving to Kishore.

Face value is a useless number. Any metric created using face value is equally useless.

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