Buy Max Financial; target of Rs 870: Emkay Global Financial

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Emkay Global Financial's research report on Max Financial

MAXF logged a strong finish to FY23, with supernormal growth in Mar-23, thus lifting the FY23 PAE growth to 11.8%; also, the strong increase of non-par savings in the product mix to 48% (+19pps YoY) drove a 3.9ppt YoY VNB margin expansion to 31.2%. With its proprietary channels continuing to perform strongly and the Axis Bank channel showing signs of improvement in growth, Management expressed confidence on achieving double-digit APE growth in FY24, in spite of the FY23 base being inflated by the fire sale of highticket non-par savings in Mar-23. Currently trading at an implied FY24E P/EV of 1.46x, MAXF shares are attractively valued, accounting even for sector headwinds and some Company-specific issues.

Outlook

We reiterate our BUY on the stock, with our appraisal value-based Mar-24E target price of Rs870/share.

For all recommendations report, click here

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Max Financial - 16 -05 - 2023 - emkay