Max Financial Services Ltd. share price target

India as the product continues to be more of a savings/investment engine, competing with bank FDs and mutual funds (MF) rather than be seen as a safety net. Hence, a bancassurance channel becomes all the more important for the Indian insurance market. Notably, Max Financial Services (MFS) currently has a tie up with Axis Bank, and the bank is one of its primary...

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.

India as the product continues to be more of a savings/investment engine, competing with bank FDs and mutual funds (MF) rather than be seen as a safety net. Hence, a bancassurance channel becomes all the more important for the Indian insurance market. Notably, Max Financial Services (MFS) currently has a tie up with Axis Bank, and the bank is one of its primary...

We have tweaked our APE growth assumptions as a result of which our target price increases to Rs 577 (FY20 EV + 26.5x FY20E adj. VNB). While 1QFY19 total APE grew 17% YoY to Rs 5.6bn post over-run VNB margins increased only 10bps YoY to 18.1%. Margin was dragged lower as 1Q is a seasonally slower qtr (~15% of annual premiums), product mix changed (300bps YoY improvement in protection offset by a 1300bps interchange from PAR to linked), and costs rose as a result of higher investments in proprietary channel and higher acquisition operating costs.

Operating Income increased by 992.13% to Rs. 128.98 Cr in Q1FY19 when compared to the previous quarter. Max Financial Services Ltd Q1FY19 results Comment

We maintain BUY with a TP of Rs 665 (FY20 EV+ 26x FY20E VNB). New Business Premium and Individual APE grew at a better than expected 23.8% YoY and 27.6% YoY respectively. For FY18, VNB margin improved 140bps to 20.2% as a result of higher share of protection business, higher interest rates and better product features in the Non-par segment. During FY18, Max has delivered an impressive 20.6% RoEV (+70bps).

New Business Premium (NBP) grew by 23.7% yoy to Rs17.1bn in Q4FY18 (+60.5% qoq) (Emkay Est: Rs17.1bn). APE growth was also in line at Rs13.5bn (+23.9% yoy; 74.9% qoq). Renewals at Rs29.3bn came in better than expected due to improvement in 25 th Month & 37th Month persistency to 72% (+200 bps yoy) and 62% (+200 bps yoy), respectively. The 13th Month persistency remained stable at 80%....

We maintain BUY with a TP of Rs 665 (FY20 EV+ 26x FY20E VNB). Max Lifes 3QFY18 results were largely in line. New Business Premium grew by 15.5% while Individual APE growth was 16.8% YoY. Product mix tilted towards ULIP due to strong performance of the equity market. The company hasnt disclosed quarterly margin as it discloses it on half yearly basis.

actively manages a 69% stake in Max Life Insurance Company Ltd. (MLIC), making it India's first listed company focused exclusively on life insurance. Max Life is a joint venture with Japan's Mitsui Sumitomo Insurance and is India's fourth largest...

Event: Max Financial Services (MFS) and Max Life have entered into an agreement for a potential merger with HDFC Life. Under this arrangement, Max Life will first merge with MFS, which will in turn merge with HDFC Life. This arrangement will ensure an automatic listing for HDFC Life. Motilal Oswal increased Buy price target of Max India Limited to 545.

Trendlyne has 3 reports on MFSL updated in the last year from 1 broker with an average target of Rs 545. Brokers have a rating for MFSL with 2 price upgrades in past 6 Months.