Synopsis:
Max Financial Services plunged by 4 percent on Thursday after ICICI Prudential reduced its stake in the business by 2.08%.
The shares of this leading life insurance services provider have plunged by approximately 4 percent after ICICI Prudential trimmed its stake in the business. In this article, we will dive more into the details.
With a market capitalization of 52,295 crore, the shares of Max Financial Services Ltd are currently trading at Rs 1,515 per share, down by 9 percent from its 52-week high of Rs 1,666.90 per share. Over the past five years, the stock has delivered a positive return of 163 percent.
ICICI Prudential Mutual Fund, a well-known name in the mutual fund industry, has reduced its stake in Max Financial Services. The fund sold around 71.7 lakh shares of the company over a period from March 28 to July 15, 2025.
As of March 2025, ICICI Prudential held a 5.90% stake in Max Financial. After the recent sale, its shareholding has come down to 3.82%. This move indicates that the fund has trimmed its exposure to the company by 2.08% during this period.
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Financial Highlights
The company reported a marginal revenue decline of 0.24 percent to Rs 46,469 crores in FY25 from Rs 46,580 crores in FY24. On the profitability front, it recorded a modest net profit growth of 2.54 percent, rising to Rs 403 crores in FY25 from Rs 393 crores in FY24.
The stock delivered an ROE and ROCE of 7.22 and 8.07 percent respectively, and is currently trading at a high P/E of 158.54x as compared to its industry average of 76x.
As of March 2025, DIIs hold the largest stake in the business with 47.29 percent, followed by FIIs with 44.75 percent, public with 6.21 percent, and promoters with just 1.74 percent.
Max Financial Services Limited, through this subsidiary, offers investment and management advisory services in India. Its core business focus is in the life insurance sector and offers participating, non-participating, and linked products for life, health, and pension benefits for individuals and groups, along with rider provisions. The company has a network of distribution with agents, banks, brokers, and others.
Written by Satyajeet Mukherjee
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