Sharekhan has given Buy on the stock with a revised price target (P recommendation for Max Financial Services with a target price of Rs. ekhan is bullish on Max Financial Services has recommended buy on the stock with a revised price target (PT) of Rs. 1,250 in its research report issued on Feb 02, 2022


MLI’s business has evolved over the years with improving VNB margins, private market share at 10% and diversified product portfolio. It is an attractive player with strong capabilities and business mix in the insurance space. Axis Bank continues to be the MLI’s strongest distribution partner, with 67% contribution to APE and, hence, is a crucial partner for it. Moreover, MLI has been on-boarding newer bancassurance partners and new-age digital players, which would not only help diversify the mix but also provide higher sales capacity for it. Hence, we believe business tailwinds may result in providing a positive trigger for improving metrics going forward. MLI generates healthy ROEV (of 19.2% in 9MFY22) and has sufficient capital (solvency ratio of 211%) and hence it is likely to benefit from the improving outlook for the insurance sector going ahead. We maintain our Buy rating on the stock with a price target (PT) of Rs. 1,250.

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