Max Ventures see higher grade commercial space to sustain lockdown

The shares of Max Ventures & Industries traded higher after the company came up with investor update on stock exchanges. The company released the outlook of business activities based on the impact of COVID-19 related lockdown.

The company’s core area of business is real estate in NCR as well as speciality packaging films. For its real estate business, the company expects that the commercial space may face less impact with higher grade lease spaces, due to the fact that its occupiers are large corporates. They have relatively high resilience to withstand the economic downtrend thereby, impacting its Max Towers business, which is high-end tenant lease, having contracts with large corporates and MNCs.

Its under construction project-Max House Okhla though would delay completion, owing to a halt in the lockdown. As of now, the company expects delay of at least one quarter in completion. The project size is of nearly 0.3 million sq. ft. The commencement of leasing agreement was expected in the current quarter, which too can be seen being delayed thus, impacting its long-term revenue guidance. Due to a delay in this business segment, D-street expects its debt ratios to see some more pressure. The debt of segment stood at Rs 101 crore.

Its packaging films business can see more resilience to the lockdown. As its client base consists of a higher share to FMCG, the impact can be lower. The company said that its manufacturing activities continued work at an optimum capacity utilisation rate, which caters needs of FMCG companies.

The stock closed with gains of seven per cent at Rs 31.15 on BSE.