With a market capitalization of Rs 24,246 crores, the shares of Max Financial Services Limited currently trades at Rs 703. The scrip witnessed an intra-day high of Rs 709.40, gaining around 3 percent compared to the previous closing levels of Rs 689.35.
According to reports, Max Life Insurance, a subsidiary of Max Financial Services, bought a 2.99 percent stake in ‘Capital Small Finance Bank’, India’s first Small Finance Bank. The consideration for the same is said to be Rs 49.50 crores at a total valuation of Rs 1,653 crores. The target company allotted around 1.06 million shares to Max Life at Rs 468 per share.
The latest consolidated financial results of Max Financial Services portray operating revenues of Rs 31,412 crores as compared to Rs 31,181 crores of revenues in the previous year. In congruence with the pattern shown above, the net profit numbers rose from Rs 318 crores during FY21-22 to Rs 451 crores in FY22-23.
Moreover, the profitability ratios have also gone up with the return on equity (ROE) shifting from 6.43 percent in FY21-22 to 10.75 percent in FY22-23 and the return on capital employed (ROCE), keeping the timeframe the same, moving from 7.75 percent to 11.73 percent.
The shareholding pattern data available for the March 2023 quarter exhibits the Promoters holding a 10.15 percent stake (with 85.05 percent being pledged) and Foreign Institutional Investors holding a 47.7 percent stake in the company.
Max Financial Services Limited is a privately-operating company with segments comprising ‘Life Insurance’ and ‘Business Investment’. The company earns a majority of its revenue from the former segment.
Max Life Insurance is a provider of insurance primarily focusing on protection as well as savings life insurance solutions with a long-term horizon.
Written by Amit Madnani
