535.90 -3.45 (-0.64%)
NSE Aug 07, 2020 15:31
Volume: 475.3K

Max Financial Services Ltd.    
31 Jul 2020
HDFC Securities
We expect an FY21-23E APE/VNB CAGR of 12.6/16.2%. We retain our ADD rating with an unchanged target price of Rs 645 (FY21E EV + 21.3x FY22E VNB). Despite a difficult environment, MAXL delivered an APE decline of just 3.5% YoY. The margin was 250bps YoY lower mainly due to an increase in reinsurance costs, which the company has passed on 2QFY20 onwards. We expect the margin to improve hereon. We believe the deal with AXSB will provide long-term distribution capability.
Number of FIIs/FPIs holding stock fell by 7 to 207 in Jun 2020 qtr.
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