Buy Max Financial Services; target of Rs 720: Sharekhan
Sharekhan is bullish on Max Financial Services has recommended buy rating on the stock with a target price of Rs 720 in its research report dated August 24, 2020.
August 26, 2020 / 03:22 PM IST
Sharekhan's research repor on Max Financial Services
Max Financial Services’ (MFS’) deal with Axis Bank Ltd is progressing well; Axis Bank to now buy a lower stake of 17% in Max Life Insurance Co. Ltd. (MLIC) taking eventual shareholding to 18%. Changes are likely due to regulatory requirements and we believe that deal is closer to fruition, which will remove the overhang on MFS (Axis partnership crucial for MLI; Axis has 57% share of APE for MLI). Max Life generates healthy ROEV (15.9% in Q1 FY21) and has sufficient capital (solvency ratio of 212%) and its robust fundamentals make it a strong candidate for potential re-rating as outlook improves.
We maintain a Buy rating with a revised price target of Rs 720.
For all recommendations report, click here
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