A leading player in the life insurance sector, this financial services stock is backed by one of India’s prominent business conglomerates. It manages the country’s largest non-bank private life insurer through a joint venture with Axis Bank Ltd. Recently, it received a ‘Buy’ rating from a major global brokerage, projecting a 16% upside.
With market capitalization of Rs 54,647 Crores, the shares of Max Financial Services Limited were down by 0.5 percent to Rs 1578.00 per share from its previous closing price of Rs.1584.80
Citi Research initiated coverage on Max Financial Services Ltd. with a ‘buy’ rating and target price of Rs 1,840, citing sustainable operating Return On Embedded Value or ROEV delivery, partnership scale-up, and product innovation as key drivers.
A balanced product mix (with no single product accounting for more than 40% on average over FY2022–25), diversified distribution channels, a sustained push to build its sales franchise, and an agile execution engine, combined with growing confidence in Axis Bank’s stability post-rebranding, support a sustainable return on embedded value (ROEV), the brokerage added.
Max Financial Services Limited (MFSL) is part of India’s leading business conglomerate – the Max Group. Focused on Life Insurance, MFSL actively manages Max Life Insurance Company Limited, India’s largest non-bank, private life insurance company.
Max Life Insurance is a Joint Venture between Max Financial Services Limited and Axis Bank Limited. It offers comprehensive protection and long-term savings life insurance solutions, through its multi-channel distribution, including agency and third-party distribution partners.
Financials and others
The company’s revenue declined by 0.2 percent from Rs. 46,580 crore in FY24 to Rs. 46,469 crore in FY25. Meanwhile, the Net profit increased from Rs. 393 crore to Rs. 403 crore during the same period.
The company has a P/E ratio of 166.34, which is higher than the industry average of 78.21, suggesting potential overvaluation.The stock delivered an ROE and ROCE of 7.22 percent and 8.07 percent respectively. Promoters and FIIs decreased their stake in the company compared to last financial year.
Written By: Rohan Pandey
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