Buy Max India, advises Santosh Singh

Santosh Singh, analyst at BFSI Societe Generale told CNBC-TV18, "We have a buy rating on Max India. The reasons are that the return ratios are going to improve from here. There is huge operating leverage in the system and if at all the financial savings everyone is thinking or maybe the entire run up has happened because we think that gross domestic product (GDP) growth will happen and financial savings will improve then our expectation is 15 percent CAGR for the market on new business premiums."

"Max India should definitely do better than 15 percent, around 20 percent sort of a growth in new business premiums. So, at around 2.3-2.4 times EV we think it is a good opportunity to invest in at these valuations as well," he said.