Please refer to important disclosures at the end of this report
The Max India has demerged into 3 listed entities - Max Financial Services Ltd
(MFSL). With the insurance business, Max India Ltd. with the health and allied
businesses, and Max Ventures and Industries Ltd. with the speciality packaging
films business. Recently, Max Financial Services and Max Life have entered into
an agreement for a merger with HDFC Life. The combined entity would be the
largest private sector insurer, both in terms of assets under management and
new business premiums. The promoter of the company has always obeyed good
corporate governance, and MFSL has very strong bancassurance tie-ups (With
Axis & yes Bank), healthy return ratios, and excess capital position. And, the
merged entity can derive meaningful synergies from a very prominent brand,
cost efficiencies, faster growth. The merger synergy benefits can further unlock
value in the stock. Hence Buy.
CMP `572
Stock Info
Beta 0.5
Bloomberg Code MAXF IN
Shareholding Pattern (%)
Promoters 30.5
MF / Banks / Indian Fls 28.9
FII / NRIs / OCBs 30.7
Indian Public / Others 10.0
Abs. (%) 3m 1yr 3yr
Sensex 6.3 8.1 53.2
Max Fin. 55.4 16.4 257.5
Nifty 8,810
Reuters Code MAXI.BO
Face Value (`)2
BSE Sensex 28,532
52 Week High / Low 618/303
Avg. Daily Volume 179,706
Market Cap (` cr) 15,283
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
Max Financial Services
Others | Finance
September 6, 2016
Max Financial Services | Finance
September 6, 2016
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website:
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