MAXL has a strong franchise run by a credible management. The partnership with Axis Bank is mutually beneficial. While MAXL is open to evaluating acquisition candidates, we suspect it may become a lucrative takeover candidate for Axis Bank after the recent leadership change at the latter. This holds optional upside value beyond our TP of Rs 577 (avg of FY20-21E EV + 22.4x avg FY20-21E adj. VNB). Max reported a healthy 2QFY19. Total APE grew 30.5% YoY to Rs 8.6bn and VNB margins (post over-run) expanded 230bps YoY to 20.4%, with higher protection in the mix (+300bps YoY), rise in interest rates and better operating performance. Management is confident on improved margins in 2HFY19 with the seasonal uptick.