Axis Bank's bold move and Stellar Q1 Performance Ignites 11 per cent intraday surge: But a twist awaits!
The revenue jumped 180.19 per cent, reaching Rs 9,168 crore compared to the same quarter of the previous year.
Today, the bulls of Dalal Street cautiously guided the stock market's opening, with both the Sensex and Nifty showing declines of 0.49 per cent and 0.46 per cent, respectively.
In this dampen market sentiment the shares of Max Financial Services Limited soared 11.04 per cent, the stock touched upper circuit at Rs 868.75 per share on BSE. Futhermore, the scrip witnessed a massive spurt in volume by more than 19.07 times.
The impressive upswing was linked to Axis Bank's stake acquisition strategy. Axis Bank made a public declaration to enhance its stake in Max Life from 9.99 percent to 16.22 percent, injecting a substantial Rs 1,612 crore through a preferential share allotment.
Additionally, on August 09, 2023, the company announced its Q1FY24 performance. Details are below:
During Q1FY24, the company achieved a remarkable 180.19 per cent growth in its top line, reaching Rs 9,168 crore compared to the same quarter of the previous year. The operating profit also witnessed a notable expansion, standing at Rs 125 crore reflecting a robust growth of 43.67 per cent compared to Q1FY23.
Furthermore, the company's bottom line witnessed an impressive surge of 48.52 per cent from the corresponding quarter of the previous year, reaching Rs 101 crore.
Overall, these results suggest that the company experienced strong growth in both its revenue and profitability during Q1FY24.
Wait, but the twist is: In recent quarters, the promoter's ownership percentages have undergone notable shifts:
- September 2022: 14.72 per cent
- December 2022: 11.45 per cent
- March 2023: 10.15 per cent
- June 2023: 10.15 per cent
With a current stake of about 10.15 percent in the company, the striking rise in pledged shares relative to promoter holding has raised questions about motivations and risks. Notably, promoters have pledged a significant 93.91 percent of their shares, underscoring their strong engagement in the company's operations.
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About Max Financial Services:
Established on February 24, 1988, Max Financial Services is a vital arm of the prestigious Max Group. It nurtures investments, provides strategic management advice, and owns a strong 81.83 per cent stake in Max Life Insurance, a leading Indian non-bank insurer.
The stock has witnessed significant buying activity as it has surged more than 65 per cent in the last 3 years.
Keep a close eye on this trending stock.
Disclaimer: The article is for informational purposes only and not investment advice.