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24 November, 2024 12:43 IST |
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Max Financial Services: Growth to pick up over FY21-26; margin trajectory stable
Source: IRIS | 02 Dec, 2021, 12.04PM
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| Rating: NAN / 5 stars. |
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 The past few years have been challenging for Max Life, with the management's focus on simplifying the organization structure. Going forward, its primary focus would be on delivering superior growth (more than 20% over FY21-26E), with margin remaining range bound. It expects RoEV to remain similar to FY21 levels (18.5%), stated Motilal Oswal Institutional Equities.
The management's primary focus would be on the Protection and Retirement segment. Growth via the proprietary channel is likely to remain strong, while banca will continue to deliver healthy growth. Persistency trends have improved, while cost ratios should remain modest.
Motilal Oswal estimates 21% APE CAGR over FY21-24E, with VNB margin sustaining at 25-26%. "This would enable 24% VNB CAGR over FY21-24E, while operating RoEV would sustain ~22%. We maintain Buy rating with an unchanged TP of Rs 1,250 per share (3.6x Sep'23E EV with a 20% holding company discount)."
Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.
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