*85000 Ton Paper+216Key Hotel*

_MAGNUM VENTURES LTD_: Likely MULTIBAGGER

                  Q1FY18

Sales.              65

Depreciation 3.53

NP.                   0.24

Equity.           37.60

Paper division contributed 54 Cr to Sales                            

MVL doesn't have good track record. However stock is worth buying at cmp as Post GST, promoters will be forced to be investor friendly:
1) MVL has 216 key hotel on outskirts of Delhi known as COUNTRY INN. In hotel industry, it was not uncommon to take CASH payment for banquet functions. It was double whammy for hotel bottom line as F&B purchase in co a/c but revenue nil. Now, it has become nearly impossible. Hence, hotel division of MVL should stop incurring losses

2) Paper Division: Paper industry too had significant cash sales.  Now paper division 85000 tonnes of MVL can have hugely improved margins

3) Paper plant has 10acres land, of which only 5acres is occupied. On outskirts of Delhi

4) Finally, *once transfer of debt to ARC and 50% haircut* is formally announced by co, stock will stand RERATED

Current mktcap is half of 2017 high and tiny by any yardstick. This microcap has favourable Risk-to-Reward ratio.

We will not be surprised if MVL quotes in 3 digits in 2019(Investors may be reminded that we had advised buy on Star Paper at Rs 7 in 2014)