Review

MAX INDIA

Ticker : 539981   
FV: Rs2  
52-Week H/L: Rs98.65/52.30

We had previously recommended Max India Ltd in volume no. 36, issue no. 19 (dated March 2, 2020), when the scrip was trading at Rs 92.10. Max India is engaged in the business of investments and providing consultancy services to group companies. Through its subsidiaries, it offers health insurance, healthcare and senior living services. On a consolidated quarterly front, the net sales of the company dropped by nearly two per cent in Q3FY20 to Rs 33.92 crore from Rs 34.6 crore in Q3FY19. The company incurred an operating loss of Rs 50.04 crore in Q3FY20 as compared to an operating loss of Rs 17.91 crore in Q3FY19. As a result of the income from discontinued operations, the company was able to gain a net profit of Rs 366.68 crore in Q3FY20 as against a net loss of Rs 30.31 crore incurred in Q3FY19. The current COVID-19 pandemic is expected to aid the growth of companies belonging to the healthcare as well as the insurance sector. Hence, we recommend a HOLD.