Fundamental Analysis
MAX FINANCIAL SERVICES
Ticker : 500271
BUY: Rs 528.70
Target: Rs 585
Max Financial Services is a subsidiary of Max Group and is also, the holding company for Group’s life insurance business, which is operated through its subsidiary Max Life Insurance Company. It offers life insurance and retirement solutions for long-term savings and protection. On the consolidated financial front, the company reported a net interest income of Rs 44.85 crore for Q4FY20, which is an increase by 11.09 per cent as compared to Rs 40.37 crore reported for Q4FY19. The total income for Q4FY20 is calculated to be Rs 4,265.64 crore thus, clocking degrowth by 40.22 per cent from Rs 7,136 crore in Q4FY19. Subsequently, due to volatility in capital markets led by COVID- 19, the company gained a net profit of Rs 6.67 crore for Q4FY20,which is a significant drop by 96.66 per cent from Rs 199.91 crore gained in Q4FY19. The company has entered into a joint venture strategic partnership with Axis Bank, which will provide the company with long-term benefits. Thus, we recommend a BUY.