Shares of a Non-Banking Financial Company (NBFC) witnessed a substantial surge of 9% following a good performance in the first quarter of the fiscal year. This surge was further amplified by news of a significant stake hike by Axis Bank, a prominent player in the banking sector. The company shares trading above the 50-day and 200-day Simple moving average.
According to the exchange filing, Max Financial Services Ltd company’s total consolidated revenue rose by 180% YoY from Rs. 3,275.89 Cr in Q1 FY23 to Rs. 9,171.46 Cr in Q1 FY24. Out of the total premium income accounted for 52%, interest income-18%, Dividend income-1.6%, Rental income- 0.18%, Policyholder’s investment- 27%, and others- 1.22%.
Net profit increased by 48% YoY from Rs. 68.48 Cr in Q1 FY23 to Rs. 101.13 in Q1 FY24. New Business Premium grew by 25% to Rs. 1,857 Cr. In the quarter, their Asset Under Management was Rs. 1.23 lac Cr with 19% growth of 5-year CAGR.
Further, Axis Bank previously owned a 13% investment in this company, and by subscribing to 14.26 Cr equity shares of Max Life, the bank will also be acquiring a 6% stake, worth Rs. 1,612 Cr. After this acquisition, their stake will increase to 19%.
The mid-cap stock has a market capitalization of Rs. 29,490 Cr. On Thursday stock closed 9% up at Rs. 859.00 and on the same day the stock touched a new 52-week high of Rs. 886.55.
As of June 23, Promoters hold 10.15%, DIIs hold 34.34%, FIIs hold 48.46% and Public hold a 7.05% stake in this company.
In the Max Group, Max Financial Services Ltd. is included. Max Financial Services Limited and Axis Bank Limited collaborated to form Max Life Insurance Company Limited. Through its multi-channel distribution, which includes agency and third-party distribution partners, Max Life offers complete protection and long-term savings life insurance solutions.
Written by Sheshadri N
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