Buy Max Financial Services; target of Rs 1200: Sharekhan

BUY

Sharekhan's research report on Max Financial Services

APE grew by ~31% y-o-y (in-line) driven by strong growth in proprietary channels besides good show by ULIP and protection segment. VNB grew by only 3% y-o-y (~22% below estimates). VNB margins were at 17.5% versus 22.2% y-o-y / 28.6% q-o-q and estimates of 23.2%. Adverse product mix and higher opex led to big miss in VNB. Factoring in new surrender value norms, company expects VNB margins to be at 23-24% versus earlier 25-26% guided for FY25E.

Outlook

Stock trades at 2.0x/1.7x its FY2025E/FY2026E EVPS. We maintain a Buy with a revised PT of Rs. 1,200.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Max Financial Services_19082024_Sharekhan