Brokerages are upgrading their target price on Max Financial. Jefferies and Nomura, both have increased their target price on the stock to Rs 1,200.
According to Jefferies, the strong premium growth and margin expansion are the key highlights of Q4FY21 results. COVID-19 claims impacted the company’s sequential margin on a quarter-on-quarter (QoQ) basis. The firm expects the Value of New Business (VNB) to normalise a bit lower than earlier estimates. So, they raised VNB forecast by 2-4 percent over the next two-three years.
Nomura believes that Max Financial is the best in class in terms of surprising across metrics. According to Nomura, the company’s VNB margins are the best amongst its peers.
Watch the accompanying video of CNBC-TV18’s Abhishek Kothari for more details.
(Edited by: By Dipika)
First Published: IST