CLSA gives 'buy' rating for Max Finance

Updated : March 26, 2021 11:43:12 IST

The brokerage note states that the company’s digital offering was strong.

CLSA also adds that the company has been the largest term-life player among web aggregators.

Brokerage firm CLSA has given a 'buy' rating for Max Finance, stating that the company has been a consistent market-share gainer. CLSA has set a price target of Rs 1,225 for the stock.

The report mentions that “the Axis Bank deal to purchase a stake in Max Life Insurance will be transformative as the bank has also become a promoter and will add all-around value via product innovation, branding, and sharper distribution focus and governance inputs”.

The company’s business margins have increased to about 25 percent in nine months of FY21 and the goals are to maintain the value of new business margins in the near term and expand in the medium term. Max's digital offering is strong, making it the largest term-life player among web aggregators, states CLSA.

Max Ventures Investment Holdings, a promoter of Max Financial Services offloaded shares worth Rs 85 crore through an open market transaction at an average price of Rs 910. As per shareholding data for the December 2020 quarter, Max Ventures Investment Holdings held a 17.14 percent stake.

In February, Max Life Insurance also stated that the company had paid off 15,342 claims received in FY 2019-20, and, in the process, settled Rs 562.54 crore worth of individual claims received in FY 2019-20.

Published : March 26, 2021 11:43 AM IST

CLSA gives 'buy' rating for Max Finance

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