Max Financial Services shares gain 2% as Jefferies says 'buy', sees 47% upside

Max Financial shares have fallen 6 percent in the past month, owing to weak overall sentiment.

Shares of Max Financial Services rallied as much as 2.5 percent to Rs 1,156 in the morning trade on December 16 after Jefferies dished out a 'buy' call and raised the target price suggesting that the deal with Axis Bank bodes well in coming quarters.

With a 'buy' call and a price target of Rs 1,660, the international brokerage forecasts an upside potential of 47 percent from the last close on the NSE. Max Financial shares have fallen 6 percent in the past month, owing to weak overall sentiment.

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The brokerage highlighted that the partnership between Max Life and Axis Bank has resulted in a rebranding of the company to Axis Max Life Insurance, Jefferies said. This refreshed identity is expected to boost brand recall, particularly in Tier II and Tier III markets where Axis Bank's presence is strong.

However, Jefferies noted that regulatory norms on bancassurance will need to be monitored, given that Axis Bank contributes 45 percent of Max Life's annual premium equivalent (APE). The stock is trading at an attractive valuation of 8 times its price-to-value of new business (P/VNB).

Max Financial Services, the parent company of Max Life Insurance, reported robust financial performance for the first half of 2025. Consolidated revenue surged to Rs 25,178 crore, marking a substantial 30 percent growth compared to the previous year. This impressive rise was driven by higher investment income. Excluding investment income, revenue for the second quarter grew by 14 percent to Rs 12,820 crore.

The company’s New Business Premium, encompassing both individual and group policies, grew by 19 percent to Rs 5,091 crore. The Individual Adjusted First Year Premium saw a significant 31 percent jump to Rs 3,309 crore, contributing to an expanded market share. The number of new retail policies issued increased by 23 percent, while renewal premiums rose by 12 percent to Rs 8,046 crore, bringing the total Gross Written Premium to Rs 13,137 crore.

At about 9:20 am, shares of the company were trading at Rs 1,139, higher by 1 percent from the previous close on NSE.

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