172@29@17@136!~!172@29@0@53!~!|news|business|stocks|buy-max-financial-target-of-rs-620-hdfc-securities-5328681.html!~!|controller|infinite_scroll_article.php
Moneycontrol
Financial Freedom Offer: Subscribe to Moneycontrol Pro and grab benefits worth ₹15,000/-
Last Updated : May 28, 2020 04:39 PM IST | Source: Moneycontrol.com

Buy Max Financial; target of Rs 620: HDFC Securities

HDFC Securities is bullish on Max Financial has recommended buy rating on the stock with a target price of Rs 620 in its research report dated May 28, 2020.

Broker Research
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

HDFC Securities' research report on Max Financial


Protection (4QFY20) grew 50.8% YoY to Rs 1.8bn and its share rose 571bps YoY to 13.1%. For FY20, protection grew 41.7% YoY, contributing 13.8% to total APE. Limited pay protection is driving higher protection sales. NPAR savings contribution to total APE increased 97bps YoY to 14.1% while contribution of PAR (-360bps, 32.4%) and ULIP (-146bps, 42.4%) declined. Management expects NPAR savings contribution to increase as customer risk appetite is low. Company stated that given the yield curve, it planned to increase the duration of the NPAR savings product to 8 years.



Outlook


We have increased our VNB estimates for FY20/21E by 18.4/15.6%, and fine tuned our DCF assumptions, resulting in a 10.7% increase in TP to Rs 620. Key risks: Lower growth, higher cost over-runs, supply overhang due to promoter pledges, and any hurdles in deal.


Read More



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 May 28, 2020 04:39 pm
Sections