Feb 16, 2017 11:34 AM IST | Source: Moneycontrol.com
Buy Max Financial Services; target of Rs 661: Edelweiss
Edelweiss is bullish on Max Financial Services has recommended buy rating on the stock with a target price of Rs 661 in its research report dated February 13, 2017.
Edelweiss' research report on Max Financial Services
Max Financial Services’ (MFS; holding company for life insurance) Q3FY17 performance held in good stead. Growth momentum in life insurance business sustained and delivered across critical business metrics— persistency, healthy AUM accretion and stable expense ratio. Further, MFS will merge with HDFC Life pursuant to various approvals (recent developments indicate the merger may be delayed by a couple of months pending regulators’ approvals).
We believe, the merged entity will emerge stronger and operating leverage benefits will help it clock even better RoEVs (refer our note, Life Insurance: Coming of age, dated September 12, 2016). Maintain ‘BUY’.
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