Jefferies has maintained a ‘Buy’ rating on Max Financial Services, raising the target price to ₹1,830, as it turns more constructive on the company’s growth and margin outlook. The brokerage cited management’s confidence in delivering mid-teen APE (Annualized Premium Equivalent) growth and potential improvement in margins as key positives that led it to raise its VNB (Value of New Business) estimates by 2%.
The report also touched on governance and succession planning, noting that the leadership team appears stable, and attrition remains limited, easing market concerns. Jefferies believes the risk from potential changes to bancassurance (banca) norms has reduced, while recent changes in the Insurance Act could turn favorable for players like Max.
Further, the Axis-Max Life partnership was highlighted as offering an attractive risk-reward proposition, with Jefferies listing Max Financial as one of its top sector picks in insurance.