Max Financial Services Ltd. share price target and research reports

Latest analyst research reports with target prices and PDF download for MFSL, BSE:500271 Max Financial Services Ltd.

Max Financial Services Ltd.

30 Jul 2020

1569.70

0.38%

Q1FY21 Result Update - Better growth but weaker margins - HOLD

Hold: Max Financial Services Ltd.

Recommendation Target

Prabhudas Lilladhar

Max Life's overall APE de-grew 4% YoY supported by decent growth in single & regular premiums. Protection segment remains the key focus with shift of Product mix to NPar savings and Protection as Par share is reduced. Margins disappointed and fell to 17% for 1Q21 despite of favorable product mix on account of lower interest rates and higher cost overruns. Approvals with respect to Axis/Max/MSI deal should not get into hurdle post queries from IRDAI/RBI but should take time. We retain HOLD with revised TP of Rs545...

Max Financial Services Ltd. has gained 44.02% in the last 6 Months

Max Financial Services Ltd.

27 May 2020

1569.70

0.38%

Max Financial

Buy: Max Financial Services Ltd.

Target

Sharekhan

Max Financial Services (MFS) posted modest numbers for Q4FY2020,with below expectations operating performance, and posted slower business growth in Value of New Business (VNB) and Annualised Premium Equivalent (APE) due to impaired collections because of the lockdown. The life insurance business, Max Life Insurance (MLIC, MFS has 72.5% shareholding) saw gross written premium (GWP) rise by 6% y-o-y, despite the lockdown, which impacted the last part of March, which typically is a seasonally important period for life insurance players. The 13th-month...

Promoters initiated pledges of 28.67% of holdings in Mar 2025 qtr.

Max Financial Services Ltd.

27 May 2020

1569.70

0.38%

Q4FY20 Result Update - In line but weaker trends - BUY

Buy: Max Financial Services Ltd.

Target

Prabhudas Lilladhar

Max Life's overall APE grew 5% YoY supported by decent growth in single & regular premiums. Protection segment remains the key focus with shift of Product mix to NPar savings continuing. Margins remained stable YoY at 21.6% for FY20 (but improved sequentially to 22.8% in 4Q20) on account of support from NPar growth. Persistency has improved across all buckets except the 61m persistency (upto Mar'20 i.e.11m) being affected by the ULIP segment. We retain BUY with revised TP of Rs518 (Rs610) valuing Max Life based on 2.3x Mar-22 EV (from 2.6x Sep-22 EV), we reduce Holdco discount...

Max Financial Services Ltd. is trading above all available SMAs

Max Financial Services Ltd.

28 Apr 2020

1569.70

0.38%

Max Financial

Buy: Max Financial Services Ltd.

Target

Sharekhan

Max Financial Services Limited (MFS) announced that it had signed definitive agreements with Axis Bank Limited (Axis Bank) where the companies will be joint venture partners in Max Life Insurance Company Ltd (MLI). As per the agreement, Axis Bank will hold a 30% stake in Max Life once the deal is finalized in 12-18 months (expected), pending regulatory approvals. Due to the cap on the stake that a bank may hold in a life insurance company, Axis Bank stake is likely to remain at 30% in the JV. However, shareholders of MFS...

Max Financial Servic.. has an average target of 1515.00 from 2 brokers.

Max Financial Services Ltd.

06 Feb 2020

1569.70

0.38%

Max Financial (3QFY20): Cost overruns continue to burden margins. Maintain BUY

Buy: Max Financial Services Ltd.

Target

HDFC Securities

With a new indiv. tax code and Axis Bank embracing open architecture we expect business growth momentum to slow down in FY21-22E. Additionally, we continue to watch out for the renewal of partnership with Axis Bank. We rate MAXF a BUY with an changed TP of Rs 560 (MAXL: Dec-20E EV + 18.8x FY22E VNB). We use a holding company discount of 30%, continue with a 22% discount on VNB for Axis Bank deal, and a 10x multiple to annual leakage at the holding co level. Key risks include lower growth, higher cost over-runs, and supply overhang as a result of promoter pledges. MAXL reported in-line nos with total APE growing 16.0% YoY and 9MFY20 VNB margin was at 21.0% (+60bps YoY)- high costs continue to weigh on margins. We maintain our BUY with TP of Rs 560.

Promoters initiated pledges of 28.67% of holdings in Mar 2025 qtr.

Max Financial Services Ltd.

27 Dec 2019

1569.70

0.38%

Max Financial

Buy: Max Financial Services Ltd.

Recommendation Target

Sharekhan

Max Life Insurance (MLI) (holding company Max Financial Services) continues with strong operational performance (healthy margins, adequately capitalized and attractive EV growth) and thus is an attractive business franchise (6% overall market share). MLI's best in class 13th month persistency, indicates good customer retention and effective client communication, critical for the life insurance business. Uncertainties regarding pledging of shares, future of ownership, etc have been a drag on Max Financial (MFS; Holding company), and we...

Max Financial Services Ltd. has gained 54.89% in the last 1 Year

Max Financial Services Ltd.

27 Dec 2019

1569.70

0.38%

Max Financial

Buy: Max Financial Services Ltd.

Recommendation Target

Sharekhan

Max Financial Services Ltd. has gained 44.02% in the last 6 Months

Max Financial Services Ltd.

06 Nov 2019

1569.70

0.38%

Max Financial (2QFY20): Outlook hazy. Maintain BUY

Buy: Max Financial Services Ltd.

HDFC Securities

With Axis Bank embracing open architecture and adding a life insurance partner we expect business growth momentum to slow down. Additionally, we continue to watch out for the renewal of partnership with Axis Bank. We cut our APE growth and VNB margin assumptions. We rate MAXF a BUY with a reduced TP of Rs 565 (MAXL: Sep-20E EV + 19.4x Sep-21E VNB). We use a holding company discount to 30%, and continue with a 22% discount on VNB for Axis Bank deal, and a 10x multiple to annual leakage at the holding co level. Key risks include lower growth, higher cost over-runs, and supply overhang as a result of promoter pledges. Increased costs (16.7%, +200bps YoY), dampened VNB margins to 21.0% (+60bps YoY) despite high NPAR savings share (20%, vs. 5% YoY), and change in assumptions (business and tax), aiding margins +230bps.

Max Financial Services Ltd. has gained 34.79% in the last 3 Months

Max Financial Services Ltd.

06 Nov 2019

1569.70

0.38%

Q2FY20 Result Update

Buy: Max Financial Services Ltd.

Target

Prabhudas Lilladhar

MAXF have put up to withdraw the application for share swap & purchase transaction for MSI's stake in Max Life for MAXF shares as agreement for finalization of definitive terms were not reached. MSI will remain as JV partner of Max Life continuing existing arrangements. Transaction arrangement may not be required for reverse merger but some issues have to be ironed out like a one-off pending contingent liability from erstwhile telecom investment. Management also showcased confidence on being strongly associated with Axis but are still to reach any arrangement for future course of action. Key...

Promoters initiated pledges of 28.67% of holdings in Mar 2025 qtr.

Max Financial Services Ltd.

07 Aug 2019

1569.70

0.38%

Max Financial (1QFY20): End game unclear. Maintain BUY

Buy: Max Financial Services Ltd.

Target

HDFC Securities

While this transaction simplifies corporate structure paving way for potential M&A or folding up of MAXL into MAXF and is value accretive for minority shareholders, management was unable to clearly spell out its end game. This adds an additional layer of uncertainty to the one that already exists- renewability of partnership with Axis Bank. We rate MAXF a BUY with TP of Rs 589 (MAXL: FY20E EV + 21.9x FY21E VNB). We have increased our holding company discount to 30% (vs. 15%), and continue with a 22% discount on VNB for Axis Bank deal, and a 10x multiple to annual leakage at the holding co level. Key risks include lower growth, higher cost over-runs, and supply overhang as a result of promoter pledges. Despite an increasing share of NPAR savings (15% share, +3.7x YoY), and change in assumption which helped margins expand 160bps YoY, VNB margins disappointed at just 19.6% (+150bps YoY).

Max Financial Services Ltd. is trading above all available SMAs

Is Max Financial Services Ltd. worth buying?

218 Votes:

Buy 70.64%

Sell 19.72%

Hold 9.63%

RESEARCH REPORTS

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