Sharekhan has given Buy recommendation for Max Financial Services with a target price of Rs. 1100 in its research report issued on Feb 25, 2021

Sharekhan’s research report on Max Financial Services

The much-awaited IRDAI approval to the Max Financial Services (MFS) – Axis Bank deal is positive; removes the regulatory overhang on the transaction. Max Life Insurance (MLI) has evolved over the years (has best-in-class VNB margins, high ROEVs, diversified product portfolio, reduced dependency on PAR business etc.) and is an attractive player with strong capabilities. We see operating leverage benefits kicking in going ahead, as improving business mix would support VNB margins; we believe the Indian insurance market has attractive growth opportunities. Valuations are reasonable at 2.3x/2.0x its FY2022E/FY2023E EVPS; deal closure may provide further re-rating boost.


We maintain our Buy rating with a revised PT of Rs. 1,100.