Buy Max Financial Services; target of Rs 2200: Motilal Oswal

Buy

Motilal Oswal's research report on Max Financial Services

Axis Max Life Insurance’s (MAXLIFE) APE grew 30% YoY to INR27.3b (11% beat due to better-than-expected APE for Dec’25). For 9MFY26, APE grew 21% YoY to INR69.1b. MAXLIFE’s VNB rose 35% YoY to INR6.6b (12% beat), resulting in a VNB margin of 24.1% (MOFSLe: 24%) vs. 23.2% in 3QFY25. For 9M, VNB grew 30% YoY to INR16.3b, reflecting a VNB margin of 23.6% (21.9% in 9MFY25).

Outlook

We raise our APE estimates by 4% each in FY26/FY27/FY28, considering the 3Q performance and strong growth in Jan’26. Our VNB margin estimate remains intact. We reiterate our BUY rating on the stock with a TP of INR2,200, premised on 2.2x FY28E EV.

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