Buy MAX Financial Services; target of Rs 1200: Motilal Oswal

Motilal Oswal is bullish on MAX Financial Services recommended buy rating on the stock with a target price of Rs 1200 in its research report dated June 09, 2021.

Broker Research

June 14, 2021 / 14:39 IST

An Edelweiss research report for Q4FY21 says road tonnage continued to improve, evident in e-way bill generation (up 6% QoQ) and improved core trucking rentals. “We estimate tonnage would increase by three–five percent for truckers. Asset-light plays Mahindra Logistics and TCI Express remain our preferred picks due to their ability to scale up/down as the environment demands,” the report said. Edelweiss is bullish on Blue Dart Express due to the pandemic-induced boom in e-commerce and its leaner cost structure. It has retained a ‘buy’ call on Mahindra Logistics, TCI Express and Blue Dart Express.

26 Aug, 2025 12:21

Volume

Todays L/H

Motilal Oswal's research report on MAX Financial Services

MAXLIFE continues to demonstrate resilient performance amid a challenging macro environment, led by healthy (36%) APE growth, aided by robust growth in Non-PAR savings and recovery in the ULIP segment. After witnessing robust Protection growth over 1H, the same moderated during 2HFY21. Healthy product mix towards high margin segments and strong APE growth aided VNB growth of 44% YoY during 4QFY21. Strong push via the bancassurance channel has aided premium growth, while the proprietary channel is showing healthy traction. We expect 22% CAGR in APE growth over FY21-23E, with VNB margin improving to 26.8% by FY23E. This would enable 26% VNB CAGR over FY21-23E, while operating RoEV sustains ~22%. Maintain Buy.

Outlook

We estimate APE growth at 22% CAGR over FY20-23E and VNB margin to improve to 26.8% in FY23E. This would enable 26% VNB CAGR over FY21-23E, while operating RoEV will sustain ~22%. We maintain our Buy rating with a TP of INR1,200/share (3.1x FY23E EV/3.8x FY23E EV after a 20% holding company discount).

For all recommendations report, click here