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Buy Max Financial Services: Target Of Rs 750: Sharekhan

Sharekhan is bullish on Max Financial Services recommended buy rating on the stock with a target price of Rs 750 in its research report dated November 02, 2020.

Nov 5, 2020 / 05:06 PM IST
 
 
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Sharekhan's research repor on Max Financial Services


Max Financial Services (MFS) posted strong numbers for Q2FY2021, with strong Individual APE growth, encouraging growth in embedded value (EV) with market share gains (despite challenges due to COVID-19). Value of New Business (VNB) written during H1FY21 grew by 20% y-o-y, while New Business Margin (NBM) expanded by 320 bps y-o-y to 24.2%, helped by a shift in product mix towards NPAR- Savings and Protection products. EV was at Rs 11,047 Cr., with RoEV at 17.5%. We believe the Indian insurance sector has a long growth runway; and Max Life, with strong metrics, stable bancassurance partnership with Axis Bank, etc is well-placed to benefit from growth opportunities.



Outlook


Max Financial is available a reasonable valuation of 1.7x / 1.5x FY2022E / FY2023E MCap / EV; We maintain Buy with a revised PT of Rs. 750.


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.

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first published: Nov 5, 2020 05:06 pm

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