Buy Max Financial; target of Rs 1030: Emkay Global Financial

Emkay Global Financial is bullish on Max Financial has recommended buy rating on the stock with a target price of Rs 1030 in its research report dated June 08, 2022.

Broker Research

June 09, 2022 / 15:45 IST

"India’s specialty chemicals industry is a decadal growth opportunity and it is still not too late to participate in the value creation process. We prefer CRAMS/CSM players Navin Fluorine (Navin) and PI Industries (PI) as they provide long-term earnings visibility. We also like UPL due to robust growth outlook and reducing debt concerns and SRF due to rising contribution from the chemicals business," JM Financial research report.

26 Aug, 2025 12:21

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Emkay Global Financial's report on Max Financial

We hosted Max Financial Services’ top management in Mumbai on June 7, 2022 for meetings with DIIs to discuss the company’s business performance and growth trajectory, as well as investor concerns. Mr. Prashant Tripathy, CEO of Max Life, and Mr. Amrit Singh, CFO, were present. The key highlights: 1) the plan to simplify the corporate structure is on track and updates from the regulator’s end are awaited; 2) the promoter is working on plans to reduce the pledge on MAXF shares; 3) Max Life’s share in the Axis Bank channel should improve and stabilize in FY23; and 4) overall medium-term APE and VNB growth of above 20% remains an achievable target.

Outlook

Due to the changing competitive landscape, the company is prioritizing growth over profitability, and has guided for a slightly lower VNB margin in FY23 than 27.4% in FY22. However, the company is confident of delivering ~16-18% VNB growth, driven by APE growth.

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