Moneycontrol PRO
UPCOMING EVENT:Join us for New HorAIzon from Oct 6-7, 2pm and be a part of exciting conversations on tech & innovation

Buy Max Financial Services: target of Rs 1100: Sharekhan

Sharekhan is bullish on Max Financial Services has recommended buy rating on the stock with a target price of Rs 1100 in its research report dated February 25, 2021.

February 26, 2021 / 01:02 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Sharekhan's research report on Max Financial Services


The much-awaited IRDAI approval to the Max Financial Services (MFS) - Axis Bank deal is positive; removes the regulatory overhang on the transaction. Max Life Insurance (MLI) has evolved over the years (has best-in-class VNB margins, high ROEVs, diversified product portfolio, reduced dependency on PAR business etc.) and is an attractive player with strong capabilities. We see operating leverage benefits kicking in going ahead, as improving business mix would support VNB margins; we believe the Indian insurance market has attractive growth opportunities. Valuations are reasonable at 2.3x/2.0x its FY2022E/FY2023E EVPS; deal closure may provide further re-rating boost.


Outlook


We maintain our Buy rating with a revised PT of Rs. 1,100.

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.

Broker Research
first published: Feb 26, 2021 01:02 pm

stay updated

Get Daily News on your Browser
Sections
ISO 27001 - BSI Assurance Mark