Companies

Max Financial Services Ltd hits 52-week high on strong Q3 results

Our Bureau Mumbai | Updated on February 10, 2021

On the NSE, it was trading at ₹792.60, up ₹54.55 or 7.39 per cent. It hit a 52-week high of ₹798.95

The shares of Max Financial Services Ltd. (MFSL) hit fresh highs on Wednesday after the company recorded a strong performance in Q3 FY21.

At 11:40 am, the company was trading at ₹792.65 on the BSE, up ₹54.75 pr 7.42per cent. It hit a 52-week high of ₹798.75. It opened at ₹749.90 as against the previous close of ₹737.90. On the NSE, it was trading at ₹792.60, up ₹54.55 or 7.39 per cent. It hit a 52-week high of ₹798.95.

The company on Tuesday announced its financial results for the quarter ended December 31, 2020. The company recorded a consolidated Profit After Tax (PAT) ₹227 crore, up 54 per cent year-on-year in Q3. MFSL’s consolidated revenues were up 68 per cent YoY at ₹8,990 crore due to higher investment income.

Also read: Max Financial Services net up 54% in Q3

The company’s sole subsidiary Max Life reported a Gross written premium of ₹4,629 crore in the quarter, up 19 per cent over the previous year. Shareholders’ PAT rose to ₹220 crore, up 43 per cent over 2019, due to higher investment income and reserve release due to hedging of in-force Protection business.

Motilal Oswal Research, seeing further upside in the stock maintained a Buy rating with a target price of ₹860.

“Overall, with increasing focus towards high margin products and productivity improvements, we estimate APE growth at 16 per cent CAGR over FY20-23E, while VNB margin will sustain ~24 per cent in FY23E. This would enable 21 per cent VNB CAGR over FY20-23E, while operating RoEV will sustain ~20per cent, with embedded value (EV) reflecting 18per cent CAGR over FY20-23E,” it said.

Emkay Securities also maintained a Buy rating on MFSL with a target price of ₹830. “We increase our VNB margin assumptions to 26.7 per cent/27 per cent for FY22/23. We continue to like MAXL for its diversified product profile and consistency in margin improvement,” it said.

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

Published on February 10, 2021
stocks and shares
Max Financial Services Ltd
  1. Comments will be moderated by The Hindu Business Line editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.