1. At a Glance – The Hotel Lobby Looks Fancy, The Paper Mill Smells Like Debt
Market Cap: ₹143 Cr
Current Price: ₹20.9
Price to Book: 0.21x
TTM Sales: ₹455 Cr
TTM PAT: ₹-10.41 Cr
Q3 FY26 Sales: ₹101.88 Cr
Q3 FY26 PAT: ₹0.26 Cr
ROCE: 3.68%
ROE: 1.48%
Debt: ₹267 Cr
Interest Coverage: 0.57
Magnum Ventures is that guy who owns a 5-star vegetarian hotel lobby but runs it on 18% interest rate NCDs. The stock is trading at just 0.21 times book value — which either means “deep value opportunity” or “market knows something you don’t.”
Q3 FY26 shows revenue of ₹101.88 Cr and profit of ₹0.26 Cr. That’s not a typo. Two hundred and sixty thousand rupees in profit on ₹100+ crore sales. Margin thinner than the paper they manufacture.
And yet — there’s a demerger brewing, ₹150 Cr raised, NCD refinancing happening, and a rating of ACUITE BB (Stable).
Is this a turnaround story?
Or is this a “survive first, thrive later” situation?
Let’s open the file.
2. Introduction – The Curious Case of the Paper & Pulao Empire
Magnum Ventures operates in two completely different worlds:
- Paper manufacturing (76% of 9M FY25 revenue)
- A 5-star vegetarian hotel under Country Inn & Suites in Sahibabad
One side is recycled wastepaper.
Other side is premium banquets and Little Italy franchise.
It’s like running a scrap yard and a wedding palace under the same roof.
Recently, the board approved a demerger (27 Feb 2026):
Paper business (₹29,657.46 lakh, 75%) to be transferred to Magnum Paperz under a 2:10 equity exchange ratio.
Translation?
They’re separating the messy factory from the fancy hotel.
Smart move? Maybe.
Because paper is capital-heavy, volatile, raw material sensitive, and interest hungry.
Hotel business? Asset-heavy but predictable cash generator — 87.25% average occupancy in FY25.
But here’s the catch:
They’ve been raising debt like wedding buffet refills.
18% coupon NCDs.
₹240 Cr proposed refinancing.
₹90 Cr capex plan.
Are they expanding or refinancing their stress?
Let’s dig deeper.
3. Business Model – WTF Do They Even Do?
A) Paper Division (76% Revenue – 9M FY25)
Manufactures:
- Grey Board (26%)
- Newsprint (23.8%)
- Duplex Board (22%)
- Kraft Paper (17.7%)
- NS Paper & Board (10.5%)
Capacity: 85,000 MT annually (expanding to 1,00,000 TPA)
Facility: 5,00,000 sq ft in Sahibabad
In-house 6 MW thermal power plant
They manufacture eco-friendly recycled paper. Sounds ESG-friendly. Actually capital-intensive.
Paper margins depend on:
- Wastepaper prices
- Realizable product prices
- Energy cost
- Working capital cycle
Inventory days in Mar 2025: 174 days.
That’s half a year of paper lying around.
Paper business is like running a grocery shop in bulk — margins small, inventory large.
B) Hotel Division (24% Revenue – 9M FY25)
Property:
- 216 rooms
- 9 banquet halls
- 60,000+ sq ft event space
- 52-seater theatre
- 5 restaurants
Average occupancy FY25: 87.25%
Room revenue: 76.2%
F&B: 24.8%
Online booking split:
- MakeMyTrip: 52.2%
- Goibibo: 13.3%
- Others smaller
They also launched a Little Italy franchise.
Hotel business is
