Buy Max Financial Services; target of Rs 1850: Sharekhan

Sharekhan's research report on Max Financial Services

The company is optimistic of growth picking up at Axis Bank channel besides continued strong growth at its Proprietary channels and other bancassurance partnerships. Thus, it is reasonably confident to deliver mid-teen APE growth with VNB margins at 24-25% in FY26. The company is awaiting IRDAI approval for the reverse merger, a move contingent on upcoming amendments to the Insurance Act. This would entail the separate listing of Axis Max Life, removing hold co discount and unlock value.

Outlook

Stock trades at 2.3x/2.0x its FY2026E/ FY2027E EVPS. We maintain a Buy with a revised PT of Rs. 1,850.

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Max Financial Services - 25062025 - khan