Max Financial Services Stock: Big NEW BUY Call! Brokerage Firm Predicts Stunning Gains with Rs 1,925 Target!

Insurance

|

Updated on 13 Nov 2025, 08:20 am

Prabhudas Lilladher's latest research report on Max Financial Services presents a bullish outlook, maintaining a 'BUY' recommendation and setting a target price of Rs 1,925. The report indicates that the company's 2QFY26 Annualized Premium Equivalent (APE) grew by 15% year-on-year, primarily due to strong performance in Non-Par Annuity and Protection (NPAR) segments, alongside the protection business. Max Financial Services anticipates this growth momentum to continue. The company's Value of New Business (VNB) margin saw a substantial expansion to 25.5% in the quarter. Despite the impact of GST exemption on certain products, the company expects a favorable product mix to offset this, leading to margin improvement. Consequently, Prabhudas Lilladher has revised its margin estimates upwards to 24.2% for FY26 and 24.6% for FY27. The brokerage values Max Life using the Appraisal Value framework, supported by an expected Price to Embedded Value (P/EV) multiple. The key positives highlighted are the strong outlook on growth and the improving margin trajectory.

Impact: This positive research report from a reputed brokerage firm is likely to boost investor confidence in Max Financial Services. The 'BUY' call and raised target price could attract increased investor interest, potentially leading to a rise in the stock price. Investors will be keen to see if the company can deliver on its projected growth and margin expansion. Rating: 8/10

Difficult Terms: APE (Annualized Premium Equivalent): A measure of new business sales in the insurance industry, representing the value of premiums on an annual basis. NPAR (Non-Par Annuity and Protection): Refers to non-participating annuity (fixed payment plans) and life protection insurance products. VNB Margin (Value of New Business Margin): The profitability of new insurance policies sold, expressed as a percentage of APE. GST Exemption: Relief from Goods and Services Tax on specific products or services. Appraisal Value Framework: A method to value insurance companies by assessing the present value of future profits and embedded value. P/EV (Price to Embedded Value): A valuation ratio comparing a company's market price to its embedded value, used for insurance firms.