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Last Updated : Aug 10, 2018 04:39 PM IST | Source: Moneycontrol.com

Buy Max Financial; target of Rs 577: HDFC Securities

HDFC Securities is bullish on Max Financial has recommended buy rating on the stock with a target price of Rs 577 in its research report dated 07 Aug 2018.

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HDFC Securities' research report on Max Financial

While 1QFY19 total APE grew 17% YoY to Rs 5.6bn post over-run VNB margins increased only 10bps YoY to 18.1%. Margin was dragged lower as 1Q is a seasonally slower qtr (~15% of annual premiums), product mix changed (300bps YoY improvement in protection offset by a 1300bps interchange from PAR to linked), and costs rose as a result of higher investments in proprietary channel and higher acquisition operating costs.

Outlook

MAXL  is  also  open  to  evaluate  any acquisition candidates. We have tweaked our APE growth assumptions as a result of which our target price increases to Rs 577 (FY20 EV + 26.5x FY20E adj. VNB).

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.

First Published on Aug 10, 2018 04:39 pm
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