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.
Outlook
We maintain a Buy rating with a revised price target of Rs 720.
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
